Oil Rises From Lowest Since October On Broader Market Optimism
West Texas Intermediate rose toward $58 a barrel, after falling 1.5% in the previous session, while global benchmark Brent closed above $61.
Oil rallied from its lowest close in almost two months, buoyed by bullishness in broader financial markets.
West Texas Intermediate rose toward $58 a barrel, after falling 1.5% in the previous session, while global benchmark Brent closed above $61. Asian stocks were set for a positive start Friday after US shares hit a fresh record and the MSCI All Country World Index — one of the widest measures of the stock market — hit a closing high.
The optimism helped offset a generally bearish outlook for crude, which has lost almost a fifth this year on concerns over a glut. The International Energy Agency on Thursday reiterated its prediction for an unprecedented surplus — although slightly below its forecast last month — and said global inventories have swollen to a four-year high.
Geopolitical tensions may also add some support to oil prices. President Donald Trump announced new sanctions on three of Venezuelan counterpart Nicolas Maduro’s nephews as well as six oil tankers, after the US seized a supertanker off the coast of the Latin American nation on Wednesday.
The ship seizure was just the beginning of a new phase in the Trump administration’s ramped-up pressure campaign against the Venezuelan president, according to people familiar with the operation. The act of economic statecraft is designed to deny Maduro a lifeline of oil revenue and force him to relinquish power, the people said.
Elsewhere, production in Brazil is rebounding from outages that removed more than 300,000 barrels a day last month. The nation is Latin America’s largest supplier and a major source of new barrels, along with the US, Canada, Guyana and Argentina.
Prices
WTI for January delivery gained 0.5% to $57.89 a barrel at 8:26 a.m. in Singapore.
Brent for February settlement closed 1.5% lower at $61.28 a barrel.
