Oil Rallies to 3-Month High

Oil Rallies to 3-Month High

Brent crude hit a three-month high on Monday, extending gains that have lifted crude benchmarks by more than a third from this year’s lows on an improving global outlook and stronger sentiment for a market recovery.
Front-month Brent crude futures traded as high as $39.50, the highest since early December, and were trading at $39.30 a barrel, up 58 cents from their last settlement. In January, prices fell to levels not seen since 2003, Reuters reported.
US West Texas Intermediate futures fetched $36.53 a barrel, up 61 cents from the last close. The day’s high of $36.72 was more than 40% above February lows. The May WTI contract settled on Friday at $35.92 a barrel, up 3.91%.
The gains were driven partly by a rally that took Asian equities to two-month highs. US energy firms also cut oil rigs for an 11th week in a row to the lowest since December 2009, as producers slashed costs.
Bets on rising Brent crude prices hit a fresh record high in the week to March 1, according to data from the Intercontinental Exchange, and major OPEC producers are privately starting to talk about a new oil price equilibrium of $50 a barrel, according to New York-based consultancy PIRA. But analysts warned the glut of physical oil could again weigh on prices.
“The past days’ oil price rally was from our perspective less related to a shift in fundamentals but a recovery of sentiment,” said Norbert Ruecker, head of commodities research with Julius Baer, adding the bounce did not yet herald a long-term recovery.

Short URL : http://goo.gl/JxQFJw
  1. http://goo.gl/qXn9pV
  • http://goo.gl/E0IbRy
  • http://goo.gl/3UYW0X
  • http://goo.gl/5YvJnS
  • http://goo.gl/rruZVX

You can also read ...

No Plan to Increase Oil Production in Next 12 Months
Iran does not intend to increase crude output in the next...
Gasoline Production Hits Record
Iran's gasoline production has hit a record with 77.4 million...
By 2025, the length of Iran’s gas pipelines should increase by 9,000 km.
Over 182 billion cubic meters of natural gas were supplied...
Budget Cut to Cause  Drastic Oil Reduction
Narsi Ghorban, a prominent Iranian energy analyst from London...