Oil prices rally after heavy sell-off

Oil prices rebounded Friday from previous day’s rout, as traders shrugged off their disappointment over the Organization of the Petroleum Exporting Countries’(OPEC) output agreement, reports Xinhua. Oil prices settled sharply lower Thursday, with both US oil and Brent crude tumbling nearly 5 per cent, as investors were disappointed about the OPEC’s decision to extend production cuts by nine months.
Traders had started to speculate that maybe the cartel would make deeper cuts to output or even keep the agreement in place for another year. Meanwhile, the number of rigs operating in U.S. fields increased by 2 to 722 this week, marking a nineteenth straight weekly gains, oilfield service company Baker Hughes reported Friday.
The West Texas Intermediate for July delivery added 0.90 U.S. dollar to settle at 49.80 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery gained 0.69 dollar to close at 52.15 dollars a barrel on the London ICE Futures Exchange.

 

Oil prices rally after heavy sell-off

Oil prices rebounded Friday from previous days rout, as traders shrugged off their disappointment over the Organization of the Petroleum Exporting Countries(OPEC) output agreement, reports Xinhua. Oil prices settled sharply lower Thursday, with both US oil and Brent crude tumbling nearly 5 per cent, as investors were disappointed about the OPECs decision to extend production cuts by nine months. Traders had started to speculate that maybe the cartel would make deeper cuts to output or even keep the agreement in place for another year. Meanwhile, the number of rigs operating in U.S. fields increased by 2 to 722 this week, marking a nineteenth straight weekly gains, oilfield service company Baker Hughes reported Friday. The West Texas Intermediate for July delivery added 0.90 U.S. dollar to settle at 49.80 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery gained 0.69 dollar to close at 52.15 dollars a barrel on the London ICE Futures Exchange.