Oil prices surged to 2016 peaks for the second straight day on
Wednesday after the Federal Reserve appeared more optimistic in its
outlook for the global economy.
Oil prices surged to 2016 peaks for the second straight day on
Wednesday after the Federal Reserve appeared more optimistic in its
outlook for the global economy. (Photo: AFP/Andy Buchanan)
NEW YORK: Oil prices surged to 2016 peaks for the second
straight day on Wednesday (Apr 27) after the Federal Reserve appeared
more optimistic in its outlook for the global economy.
Prices fell in early trade after the weekly US Energy
Department report showed US crude stockpiles jumped by two million
barrels last week, slightly more than analysts expected.
"We got a build in crude stocks ... which seemed to bring
some sellers out of the woods," said Gene McGillian of Tradition Energy.
But the market rallied late in the session following the
Federal Reserve's policy announcement. As expected the Fed left interest
rates unchanged, but it also appeared less concerned than a month ago
about global conditions, opening the door a crack to a rate hike in
June.
US benchmark West Texas Intermediate (WTI) for delivery in
June rose US$1.29 to US$45.33 a barrel on the New York Mercantile
Exchange, closing for the second straight day at its highest level since
November.
In London, Brent North Sea for June delivery climbed US$1.44 to US$47.18 a barrel, also a peak last seen in November.
"The market continues to focus on expectations we'll see
declining North American production levels and increasing demand around
the globe," McGillian said.
The oil market's recent trend higher is mainly being driven
by technical factors, said Matt Smith of ClipperData. "The breaking of
resistance lines has given prices momentum to push higher from here.
It's like a snowball gathering momentum," he said.
- AFP/de
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