Oil Bounces by $1 Per Barrel

Oil bounced by around $1 a barrel on Wednesday to claw back some of the previous day’s 6% plunge, lifted by a report of an unexpected decline in US commercial crude inventories and record Indian crude imports.
But investors remained on edge, with the International Energy Agency warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk, CNBC reported.
International Brent crude oil futures were at $63.60 per barrel, up $1.07 per barrel, or 1.7% from their last close.
US West Texas Intermediate crude futures, were up $1.03 cents, or 1.9%, at $54.46 a barrel.
Wednesday’s rebound came after a report by the American Petroleum Institute late on Tuesday that US commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to Nov. 16.
Goldman Sachs, an American multinational investment bank and financial services company headquartered in New York City, said in a note on Wednesday that it expects oil markets to remain highly volatile in the coming weeks. 
Oil markets clawed back some ground on Wednesday after tumbling more than 6% the previous day in heavy trading volumes. 
“It will take a fundamental catalyst for prices to stabilize and eventually trade higher,” Goldman said in the note, adding that such a catalyst would include physical evidence that OPEC production is “sequentially” declining and further proof of demand resilience. 
OPEC is pushing allied producers including Russia to join in output cuts of 1 million to 1.4 million barrels per day. 
Goldman said the renewed price collapse reflected “concerns over excess supply in 2019 ... (and) a broader cross-commodity and cross-asset sell-off as growth concerns continue to mount.” 
The investment bank said a sharp collapse in demand or the absence of an OPEC production cut would be the two main risk to a recovery in prices from current levels, 
“While both are unlikely, we are more concerned about the latter, with such a shift leading to sustainably lower prices,” Goldman said.