Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Crude oil futures push higher after range breakout

Published 07/10/2015, 12:32 pm
Updated 07/10/2015, 12:38 pm
© Reuters.  Crude oil futures push higher after range breakout
LCO
-
CL
-

TOKYO, Oct 7 (Reuters) - Crude oil futures rose further in thin Asian trade on Wednesday after breaking out of a month-long trading range on a forecast suggesting a global glut in supply may be easing.

Oil prices jumped more than $2 a barrel in the previous session with the global benchmark, Brent crude LCOc1 , closing above $50 a barrel for the first time in a month.

The contract rose 40 cents to $52.32 a barrel by 0110 GMT, after settling up $2.67, or 5.4 percent on Tuesday. But the volume was low with Chinese traders on holiday for National Day holidays that last through Wednesday.

The West Texas Intermediate (WTI) benchmark for U.S. crude gained 74 cents to $49.27 a barrel. The contract rose $2.27, or 4.9 percent, on Tuesday.

Global oil demand is expected to increase by the most in six years as supply from non-OPEC countries stalls, the U.S. Energy Information Administration said in its Short Term Energy Outlook on Tuesday.

U.S. production, which has surged in recent years and caused a roughly 50 percent decline in prices since June last year, is also starting to decline.

The slowdown in U.S. output is giving heart to members of the Organization of Petroleum Exporting Countries (OPEC), which has held production steady to force out more expensive producers, despite the pain to the finances of its members.

OPEC Secretary General Abdullah al-Badri told an industry conference in London on Tuesday that the market is improving, suggesting the grouping is unlikely to change its strategy of defending market share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.