17.08.201703:10:00UTC+00Oil Prices’ Rally Capped by High Output

Oil prices rose on Thursday, regaining some footing after suffering losses in the prior session.

According to traders the market was range-bound as declining crude stockpiles provided support to prices while the high output limited gains.

Brent crude futures stood at $50.44 per barrel, 17 cents or 0.3 percent up from their last settlement. Meanwhile, U.S. WTI crude futures traded at $46.84 per barrel, rising by 6 cents or 0.1 percent.

The minimal increases in both benchmarks comes after a more than 1 percent drop in the prior session.

According to EIA data published on Wednesday, commercial U.S. crude inventories have declined by almost 13 percent from their highest level in March down to 466.5 million barrels. The stocks are now lower compared to a year earlier.

Analysts at Rivkin Securities said that if stockpiles continues to decline at this rate, stocks will fall below the five-year average in around two months. ANZ bank said the markets are focused on the increasing U.S. production, which surged 79, 000 barrels per day to 9.5 million bpd in the previous week, its highest level since July 2015.