Close  
  • share this

Oil rally continues as Brent tops $50/barrel

/ 11:03 AM August 19, 2016
Oil Prices

AP File Photo

NEW YORK, United States—Oil prices continued to rally Thursday with Brent oil topping $50 a barrel following data showing lower US crude stockpiles.

Brent North Sea crude for delivery in October rose $1.04 to $50.89 a barrel in London, its first close above $50 in nearly two months.

ADVERTISEMENT

US benchmark West Texas Intermediate for September delivery gained $1.43 to $48.22 a barrel on the New York Mercantile Exchange.

Thursday’s gains continued the upward trend in place for most of August, due in part to talk from Saudi Arabia and other producers that major oil exporters could agree to cap output next month.

FEATURED STORIES

Adding to that, weekly US Department of Energy data released Wednesday showed US crude stockpiles fell by 2.5 million barrels and gasoline stocks by 2.7 million barrels.

Other data was also supportive. Carl Larry, consultant at Frost & Sullivan, said lower US jobless claims suggested an improving economy.

“We are continuing the bullish trend this week,” Larry said. “Traders are targeting higher prices.”

Analysts also cited weakness in the dollar as a boost for petroleum prices following Federal Reserve meeting minutes released Wednesday that suggested central bankers would remain cautious on raising interest rates.

Oil is traded internationally in the US currency. A weaker dollar boosts demand for crude outside the US.

“Brent has climbed… to $50 per barrel for the first time since early July, finding support from a weaker US dollar and an unexpectedly marked decline in US crude oil and gasoline stocks,” said Commerzbank analyst Carsten Fritsch.

RELATED STORIES

ADVERTISEMENT

Oil prices higher as US stockpiles drop

Oil halts rally as market weighs chance of output freeze

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Commodities, oil, world
For feedback, complaints, or inquiries, contact us.



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.