🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 9-Oil up, notches weekly gain on improved demand outlook

Published 16/07/2016, 05:28 am
© Reuters.  UPDATE 9-Oil up, notches weekly gain on improved demand outlook
LCO
-
CL
-

* June U.S. retail sales data beats forecasts

* China 2nd qtr GDP growth at 6.7 pct, stronger than expected

* Baker Hughes data shows 3rd weekly rise in U.S. oil rigs (Recasts throughout with quotes, settlement prices, details)

By Barani Krishnan and Devika Krishna Kumar

NEW YORK, July 15 (Reuters) - Oil prices rose slightly on Friday, ending the week higher, after data from top energy consumers the United States and China boosted the oil demand outlook.

Crude prices touched session highs after data showed U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, reinforcing views of steady economic growth in the second quarter. Consumer prices also rose for a fourth straight month. economic growth, which came in at 6.7 percent in the second quarter versus a year ago, also bolstered the market. numbers from China and the U.S., the world's largest economies and biggest consumers of oil, have been improving in recent months and if the trend continues in the coming weeks then this should help to boost oil's demand prospects," said Fawad Razaqzada, technical analyst for Forex.com.

"I still think oil prices are more likely to head significantly higher than significantly lower from current levels in the next several months as the market is likely to tighten further."

Brent crude futures LCOc1 closed up 24 cents, or 0.5 percent, at $47.61. It slipped as much as 1.5 percent earlier to a session low of $46.65 and rose as high as $48.05.

U.S. West Texas Intermediate (WTI) CLc1 futures settled up 27 cents, or 0.6 percent, at $45.95 a barrel. The intraday low was $45.05 and it touched a high of $46.31 during the session.

Brent notched a weekly gain of nearly 2 percent and WTI about 1 percent after a volatile week. The market saw daily moves of almost 5 percent earlier this week as the market corrected from last week's near 8-percent slump and reacted to bearish U.S. oil inventory data.

Concerns about a global glut in crude and refined products had weighed on oil earlier in the session.

"The high level of inventories remains a concern and will require a market deficit over an extended period to get it back to a more sustainable level," ANZ analysts said in a note.

Data showing a third straight weekly build in the U.S. oil rig count had little bearish impact on the market.

U.S. energy companies added six rigs drilling for oil during the week to July 15, bringing the total rig count up to 357, compared with 638 a year ago, industry firm Baker Hughes Inc said. RIG/U

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ CHART: Brent oil to retest support at $46.23

http://tmsnrt.rs/29z7Q19 CHART: U.S. oil may retest support at $44.60

http://tmsnrt.rs/29HvX9P

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.