Oil prices add to gains after best day in months
Oil were rallying again on Thursday, on the heels of the biggest one-day gain in more than two months, driven by a mild U.S. crude-inventory rise.
West Texas Intermediate futures CLH8, +1.50% rose 76 cents, or 1.3%, to $61.36 a barrel. On Wednesday, the contract finished up $1.41, or 2.4%, to end at $60.60 a barrel, to notch its biggest one-day rise since Dec. 26. Brent crude LCOJ8, +1.15% , the global benchmark, rose 62 cents, or 1%, to $64.98 a barrel. Brent closed up 2.6% at $64.36 a barrel on Thursday.
Crude prices climbed Wednesday after the Energy Information Administration said U.S. inventories rose just 1.8 million barrels in the week ended Feb. 9, coming in well under the 2.6 million-barrel rise that had been forecast by a survey of analysts by The Wall Street Journal. It also undershot data from the American Petroleum Institute that indicated a 3.9 million barrel rise.
Traders have become increasingly concerned about the amount of U.S. shale that could wash over the market. And the International Energy Agency said Tuesday that crude production from countries outside the Organization of the Petroleum Exporting Countries— and mostly U.S. shale—would likely surpass global demand for oil this year, further pressuring prices.
Also driving Wednesday’s record session was a comment from Saudi Arabia’s energy minister Khalid al-Falih, who said his country and OPEC members were committed to sticking with oil output cuts for the rest of 2018, even if they “overbalance the market a little bit.”
Among refined products, Nymex reformulated gasoline RBH8, +1.19% added 2 cents, or 1%, to $1.7304 a gallon, while March heating oil HOH8, +1.03% put on 2 cents, or 0.9%, to $1.9009 a gallon.
March natural gas NGH18, -0.15% slipped 0.1% to $2.584 per million British thermal units.
Commodity Futures Trading Commission