Oil prices rebound on US data

1st October 2014, Comments 0 comments

Oil prices rebounded on Wednesday as official data revealed a surprise drop in US crude stockpiles, indicating firmer demand in the world's biggest economy.

Brent North Sea crude for delivery in November jumped $1.05 to stand at $95.72 a barrel in late London deals.

US benchmark West Texas Intermediate (WTI) for November increased by $1.47 to $92.63 a barrel compared with Tuesday's close.

Prices "benefitted from a more subdued dollar and reduced US oil stocks," said Jasper Lawler, analyst at trading firm CMC Markets.

The Department of Energy said US reserves of commercial crude dropped by 1.4 million barrels last week, confounding analyst expectations for a rise of 900,000.

WTI prices had plummeted $3.41 a barrel and Brent tumbled $2.53 on Tuesday owing to a supply glut and a rising dollar, which has this week reached six-year highs against the yen and two-year peaks versus the euro.

A stronger dollar makes oil more expensive for buyers using rival currencies, dampening demand.

"The slide in prices was triggered by a combination of weaker US economic data that gave rise to concerns about demand, plus growing OPEC supply," Commerzbank analysts said in a note to clients.

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© 2014 AFP

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