FT: Oil price hits highest level since November
Oil prices hit their highest in almost six months as traders bet the worst of the rout is over, with the global surplus expected to shrink in the second half of 2016, according to The Financial Times (FT).
International benchmark Brent crude rose above $47 a barrel, while U.S. marker West Texas Intermediate topped $45 a barrel — the highest since November, the FT wrote.
Price gains were trimmed in afternoon trading following the release of data showing U.S. crude stockpiles continued to rise last week, scaling a fresh record as supply still outstrips demand.
Commercial crude oil inventories rose for a third consecutive week, up 2 million barrels to 540.6 million barrels, U.S. energy department data to April 22 showed. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.75 million.
Read alsoWorld Bank raises 2016 oil price forecastOil prices have rebounded since sliding to a 13-year low in January, boosted by signs global supply and demand are coming into balance. This has prompted a rush of new investment into crude futures, with speculators raising their holdings to a record high.
"The price rise is for the most part sentiment, and momentum-driven. Despite speculative overheating, any news that could suggest a higher price is viewed as a good reason to buy," said Carsten Fritsch, analyst at Commerzbank.