Wednesday, 10 May 2017

Oil rebounds above $50 on latest US stockpile figures



The oil price has bounced back above $50 after fears about over-supply sent it plunging last week.
 
Brent crude climbed 3% after latest US oil inventories eased investor worries about the glut of oil swilling around world markets.


The figures showed the biggest one-week drop in oil stockpiles this year.


Signs that oil-producing Iraq and Algeria were joining Saudi Arabia backing an extension to supply cuts also supported the price.


However, analysts remained concerned about rising output from the US, Libya and Nigeria and questioned whether the rebound could be sustained.


Brent crude has endured a volatile past few years, plummeting from more than $100 a barrel in 2014 to less than $30 last year.
 
 
It has since recovered to more than $50 and headed close to $60, helped by a decision by oil-producing nations at the end of last year to curb production.


But more recently the upturn has stalled and last week worries about how long it would take to reduce the supply glut sent Brent crude below $47.


The weakness in the oil price has battered the sector and resulted in thousands of job cuts for the likes of BP and Shell.


But it has also helped keep down motorists' costs.


Last week saw supermarkets cut petrol prices twice reflecting the recent pressure on Brent crude.





SKY     News.