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Oil Prices Rise on Oversupply Fears

Friday,   12-Oct-2018   03:47 PM (IST)

Oil prices rose on Friday as an increase in stockpile data sparked concerns about a global oversupply as demand for oil wanes.Data on Thursday showed that inventories in the U.S. continue to rise more than expected, leading to a concern of oversupply. U.S. crude inventories rose by 6 million barrels last week, compared with the general consensus of a 2.6 million-barrel increase, the EIA reported on Thursday.A week earlier the agency reported 8-million barrel rise in U.S. crude stocks.Meanwhile the Organization of the Petroleum Exporting Countries cut its oil demand growth estimates for 2018 and 2019 in its monthly report on Thursday.The organization revised its global oil demand growth to 1.54 million barrels per day this year, down by 80,000 bpd. Potential headwinds to global economic growth were cited as the reason for the downgrade.The weekly U.S. Baker Hughes oil rig count, which is a leading indicator of demand for oil products, comes out later in the session.