Oil reverses losses in New York on concern market will tighten
By Bloomberg
Oil advanced in New York on speculation that the global supply surplus will be eroded and as a drop in the dollar made commodities more attractive.
West Texas Intermediate futures advanced 0.8 percent in New York, reversing an earlier loss of 0.7 percent. U.S. crude production dropped by 18,000 barrels a day to 9.37 million, the lowest level in six weeks, data from the Energy Information Administration showed on Wednesday. A weaker U.S. currency often spurs investor demand for dollar-priced commodities.
“The crude oil market has started to rebalance,” Bjarne Schieldrop, chief commodities analyst at SEB AB, said in a report. “Demand growth is strengthening and non-OPEC supply growth is weakening.”
West Texas Intermediate for June delivery gained 21 cents to $56.37 a barrel in electronic trading on the New York Mercantile Exchange at 1:18 p.m. London time. The contract declined 45 cents to $56.16 on Wednesday. Total volume was about 26 percent below the 100-day average for the time of day. Prices have climbed 6 percent this year.
Brent for June settlement rose 78 cents to $63.51 a barrel on the London-based ICE Futures Europe exchange. The contract gained 65 cents to $62.73 on Wednesday. The European benchmark crude traded at a premium of $7.11 to WTI.
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