Oil prices soar amid signs of market rebalancing

Oil prices climbed for a consecutive fifth session on Friday amid signs of an easing global oversupply, reports Xinhua.

Government data showed US crude inventories fell more than expected last week. US crude stocks fell sharply by 7.2 million barrels last week to 483.4 million, more than the expected decrease of 2.6 million barrels, according to the weekly report by the Energy Information Administration on Wednesday.

Oil prices were also supported by Saudi Arabia’s pledge to cap its exports earlier this week. Saudi Energy Minister Khalid al-Falih said on Monday that the country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago, according to media reports.

Oil prices had rallied over 8 per cent this week, the best weekly gain this year. Analysts said recent news and data bolstered speculations that the long-oversupplied market was moving toward balance.

The West Texas Intermediate for September Delivery added 0.67 dollar to settle at 49.71 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 1.03 dollar to close at 52.52 dollars a barrel on the London ICE Futures Exchange.

Oil prices soar amid signs of market rebalancing

Oil prices climbed for a consecutive fifth session on Friday amid signs of an easing global oversupply, reports Xinhua. Government data showed US crude inventories fell more than expected last week. US crude stocks fell sharply by 7.2 million barrels last week to 483.4 million, more than the expected decrease of 2.6 million barrels, according to the weekly report by the Energy Information Administration on Wednesday. Oil prices were also supported by Saudi Arabias pledge to cap its exports earlier this week. Saudi Energy Minister Khalid al-Falih said on Monday that the country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago, according to media reports. Oil prices had rallied over 8 per cent this week, the best weekly gain this year. Analysts said recent news and data bolstered speculations that the long-oversupplied market was moving toward balance. The West Texas Intermediate for September Delivery added 0.67 dollar to settle at 49.71 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 1.03 dollar to close at 52.52 dollars a barrel on the London ICE Futures Exchange.