Oil prices rose rebounding from the previous session’s sharp losses.
The world-wide supply of oil has led to the prices dropping to lows of around six years in the recent month. Prices dropped almost 9% on Wednesday on the data that indicated US crude supplies had risen to the highest in around 80 years.
The Wall Street Journal reported that March delivery oil traded up recently by 7.1% or $3.45 to $51.90 per barrel on the New York Mercantile Exchange.
The global benchmark, Brent, climbed 6.5% or $3.52 to $57.68 per barrel on the ICE Futures Europe.
Senior vice president at Herbert J. Sims & Co., Donald Morton said, “It’s yo-yoing the last couple of days. It’s just a sympathetic bounce off the beating yesterday? Most likely. I don’t think there’s anything serious behind this.”
According to Market Watch, oil futures increased 19% within a period of four trading sessions since last week, raising hopes among the oil market bulls that the prices had bottomed.
James Marshall, partner at brokerage Atlas Commodities LLC said, “Nobody wanted to miss coming off the lows. Nobody wanted to be that guy that watched it fall 50% and then watched it rally 20% and did nothing.”
On Wednesday, the weekly oil stockpiles increased more than expected, by 6.3 million barrels and these are currently at the highest level in the last 80 years as reported by the Energy Information Administration.
In a report, Societe General said, “This week’s oil stats were overall bearish for crude and for major products, with inventory builds across the board.”
Gasoline futures climbed 4.6% pr 6.88 cents to $1.5505 per gallon.
Diesel futures climbed 3.5% or 6.23 cents to $1.8289 per gallon.
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