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Crude oil futures push higher after range breakout

Published 2015-10-06, 09:32 p/m
© Reuters. Crude oil futures push higher after range breakout
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TOKYO, Oct 7 (Reuters) - Crude oil futures rose further in
thin Asian trade on Wednesday after breaking out of a month-long
trading range on a forecast suggesting a global glut in supply
may be easing.
Oil prices jumped more than $2 a barrel in the previous
session with the global benchmark, Brent crude LCOc1 , closing
above $50 a barrel for the first time in a month.
The contract rose 40 cents to $52.32 a barrel by 0110 GMT,
after settling up $2.67, or 5.4 percent on Tuesday. But the
volume was low with Chinese traders on holiday for National Day
holidays that last through Wednesday.
The West Texas Intermediate (WTI) benchmark for U.S. crude
gained 74 cents to $49.27 a barrel. The contract rose $2.27, or
4.9 percent, on Tuesday.
Global oil demand is expected to increase by the most in six
years as supply from non-OPEC countries stalls, the U.S. Energy
Information Administration said in its Short Term Energy Outlook
on Tuesday.
U.S. production, which has surged in recent years and caused
a roughly 50 percent decline in prices since June last year, is
also starting to decline.
The slowdown in U.S. output is giving heart to members of
the Organization of Petroleum Exporting Countries (OPEC), which
has held production steady to force out more expensive
producers, despite the pain to the finances of its members.
OPEC Secretary General Abdullah al-Badri told an industry
conference in London on Tuesday that the market is improving,
suggesting the grouping is unlikely to change its strategy of
defending market share.

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