Crude oil prices steady as market begins to tighten

Oil prices steadied yesterday after US crude oil stocks rose, balancing bullish data showing the market was beginning to tighten, with falling supply and higher demand.

The US government’s Energy Information Administration (EIA) said in a monthly report global oil demand should increase by its fastest rate in six years in 2016, suggesting a surplus of crude is easing more quickly than expected.

Global benchmark Brent crude oil has dropped to around $50 from a high above $115 a barrel in June 2014 and many oil companies are losing money with oil prices so low.