Oil price news: Oil rises after dropping to 7-week low on U.S. inventory gain
BNN Bloomberg
Oil erased some of its losses after plunging Wednesday on a big jump in U.S. crude inventories that bolstered supplies.
Brent for July traded near US$84 a barrel after slumping to the lowest since mid-March in the prior session, while West Texas Intermediate was back up toward $80. The U.S. dollar fell sharply Thursday after the U.S. Federal Reserve downplayed the prospect of its next move being a hike, making commodities priced in the currency more appealing.
Crude has struggled with a barrage of pressures in recent days. U.S. stockpiles jumped the most since February last week, while key timespreads have been pointing to a softer market. Prices also breached technical levels that added to the selling, and options markets have also been less positive.
Oil has lost more than five per cent this week after soaring last month to the highest since October following Iran’s attack on Israel. The decline comes on signs of easing tensions in the Middle East — including the prospect of a historic pact between Washington and Riyadh — and worries that the Federal Reserve will keep rates high and further damp demand in fuel markets at the onset of the summer driving season.
