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Oil climbs further on short-covering, Brent at over $32

Published 2016-01-24, 07:46 p/m
© Reuters. Oil climbs further on short-covering, Brent at over $32
USD/JPY
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LCO
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SEOUL, Jan 25 (Reuters) - Crude oil futures extended gains
in early Asian trade on Monday on short-covering demand, with
both Brent and U.S. crude near$32.50 a barrel.
Oil prices surged 10 percent on Friday, one of the biggest
daily rallies ever, as bearish traders who had taken out record
short positions scrambled to close them, betting the market's
long rout may finally be over.
Brent LCOc1 had climbed 33 cents a barrel to $32.51 as of
0037 GMT after touching $32.69 a barrel earlier the session. It
settled at $32.18 a barrel in the previous session.
U.S. crude CLc1 rose 15 cents at $32.34 a barrel, compared
with its session-high of $32.64 and previous settlement at
$32.19.
"A change in investor sentiment was the key factor, with
speculative short positions in WTI falling from historically
high levels the previous week," ANZ said in a note on Monday.
"Low crude oil prices continue to negatively impact high
cost U.S. oil producers. Indeed, recent Baker Hughes data
suggested U.S. oil explorers idled more oil rigs this week."
A massive snowstorm on the U.S. East Coast helped stoke
demand for oil for heating, helping push up crude prices. While
New York and Philadelphia were getting back to business,
Washington was not ready after an historic storm dumped more
than 20 inches (51 cm) of snow on the city and nearly three feet
(1 meter) in surrounding areas.
Asian stocks gained early on Monday, relieved after seeing
Wall Street rally on the back of a sharp rise in crude oil
prices. The dollar was steady at 118.75 yen JPY= after surging
0.9 percent on Friday, when it touched a two-week high of
118.88. MKTS/GLOB


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