Oil prices gain but outlook remains clouded
Investing.com
Published Dec 18, 2014 05:19AM ET
Crude oil moves higher for second session but upside seen limited
Investing.com - Oil prices were higher for a second session on Thursday as the recent selloff in oil markets stalled, but prices remained close to five-and-a-half year lows.
West Texas Intermediate crude oil futures for delivery in January were up 2.41% to $58.12 a barrel, extending its pullback from Tuesday’s lows of $53.94 a barrel, the weakest level since May 2009.
Benchmark Brent crude was up 2.47% to $62.69 a barrel after falling below $60 dollars a barrel for the first time since May 2009 on Tuesday.
Oil’s rebound came amid speculation over whether prices have bottomed out.
Oil prices have almost halved since June, pressured lower by a combination of concerns over the sluggish global demand outlook and ample supply.
The boom in the U.S. shale industry has led to a surplus in oil markets. Last month’s decision by the Organization of the Petroleum Exporting Countries not to cut output to support prices has also weighed.
The U.S. Energy Information Administration said in its weekly report Wednesday that U.S. crude oil inventories fell by 0.847 million barrels last week, compared to expectations for a decline of 2.36 million barrels.
Gains looked likely to be held in check by the stronger dollar after the Federal Reserve said Wednesday it expected to start raising interest rates next year, after removing a pledge to keep them low for a “considerable time.”
The U.S. central bank said it would be “patient” before raising rates, guidance which it said is consistent with earlier assurances that rates would stay low "for a considerable time."
Commodity markets have benefited from the Fed’s monetary easing program in recent years and could come under pressure if it tightens monetary policy.
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Written By: Investing.com
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