Oil prices improve slightly after days of decline

Oil prices changed on Thursday after a two-day decline, including a sharp drop on Wednesday, as a U.S. government credit downgrade weighed on sentiment, though concerns around supply tightness provided some support.

Ratings agency Fitch downgraded the main U.S. credit rating, the world’s biggest oil consumer, reflecting an expected fiscal deterioration as well as a high and growing government debt burden.

Despite the broader bearish sentiment, prices are being supported by concerns of tightening supply because of output cuts by major producers that are expected to be kept in place in a meeting on Friday.

Brent crude futures were at $83.26 a barrel, up 6 cents or 0.1%, at 0422 GMT, while U.S. West Texas Intermediate crude rose 5 cents, also 0.1%, to $79.54 a barrel.

Both benchmarks were trading near their highest since April on Wednesday, but closed down 2% after the ratings downgrade. WTI prices rose nearly 16% in July while Brent gained more than 14%.

Reuters/Hauwa Abu