Oil rallies as U.S. demand revives, easing concerns of a slowdown
BNN Bloomberg
Oil rebounded from several days of declines after a bullish U.S. stockpile report eased concerns that an economic slowdown is blunting demand.
West Texas Intermediate futures rose 1.8 per cent to settle above US$88 a barrel after earlier falling to a seven-month low. Crude rallied after a US government tally Wednesday showed inventories dropped by 7.06 million last week while exports rose to a record. The bullish report halted a three-day slide magnified by negotiations to revive a nuclear deal with Iran showed progress and China’s worsening economic outlook.
“A very bullish EIA crude oil report eased global recession fears and reminded energy traders on how limited spare capacity there is for oil markets,” said Ed Moya, senior market analyst at Oanda.
