Oil Rises as Slower U.S. Stockpile Gain Adds to Risk-Asset Cheer
Thursday, 15 February 2018 19:44 WIB |
Oil in New York traded near a one-week high as improving sentiment in equities spilled over into crude and American stockpiles increased slower than forecast.
Futures rose 0.5 percent after gaining 2.4 percent on Wednesday. Global stocksrecovered from last week™s risk-asset rout, while a weaker dollar burnished the appeal of commodities priced in the U.S. currency. Adding to the crude market™s optimism is government data showing American stockpiles grew 1.84 million barrels last week, the slowest expansion in three weeks.
Oil had been struggling to recover to levels seen before last week™s plunge as investors are wary that OPEC™s strategy of curbing output could backfire and lead to a resurgence in U.S. shale production. While stockpiles in developed nations have shrunk to the lowest since 2014, supplies still remain about 52 million barrels above the five-year average, showing how far the Organization of Petroleum Exporting Countries has to go to reach its target level.
West Texas Intermediate for March delivery was up 28 cents to $60.88 a barrel on the New York Mercantile Exchange as of 11:03 a.m. in London. Prices rose 2.9 percent this week, recovering some of last week™s 9.6 percent decline. Total volume traded was about 16 percent above the 100-day average.
Brent for April settlement fell 3 cents to $64.33 on the London-based ICE Futures Europe exchange and traded at a $3.60 premium to WTI for the same month.
Source : Bloomberg