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5/12/2016, 9:10 PM (Source: TeleTrader)
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Oil rebounds after sharp fall on U.S. storage build-up

Oil futures recovered and stabilised on Thursday following a sudden sharp drop in the mid-day trade on Wall Street caused by concerns that supplies in the United States were piling up again. The feared glut in Cushing, Oklahoma, which is considered the delivery point for the West Texas Intermediate came as Genscape reported a build of nearly 550 thousand barrels in the week ending on May 10.

Light sweet crude West Texas Intermediate settled at $46.71 a barrel at the end of commodity trade in the U.S., after an early morning surge to the daily high of $47.72 a barrel on market open. The price went on to rise 0.71% to $46.55 a barrel at ICE Europe by 8.50 p.m. CET.

Premium international blend Brent was up 0.76% at $47.99 a barrel, with the earlier daily high at $48.18 a barrel.

The International Energy Agency revised up its 2016 global oil demand growth forecast to 1.2 million barrels per day from previous 1.16 million barrels per day in April.

The Organization of the Petroleum Exporting Countries reported the OPEC daily basket price of 13 crudes at $41.40 a barrel on Wednesday, compared with $40.20 the previous day.

The U.S. dollar index was 0.36% higher at 94.16.

Breaking the News / ZR