Oil Jumps As Dollar Dives, Crude Up 19% In 4 Days

Reuters

NEW YORK, Feb 3 (Reuters) - Oil prices jumped again on Tuesday as a tumbling dollar sent most commodities rallying, bringing crude's four-day rise to about 19 percent, its biggest such advance since January 2009.

Despite signs that U.S. crude supplies had registered another heavy build last week, investors were more confident that oil prices have hit a bottom after a seven-month rout. Traders said oil bulls were encouraged by BP's plan to cut capital expenditures 13 percent in 2015, which came after reductions announced by other major energy companies.

Benchmark Brent crude oil settled up $3.16, or nearly 6 percent, at $57.91 a barrel. It rallied as high as $59 for the first time since end of December.

U.S. crude, or WTI, finished up $3.48, or 7 percent, at $53.05, after a session high at $54.24.

A global glut of crude had prompted a sell-off that brought oil prices down about 60 percent from June to late January.

In the last four sessions, Brent and WTI rose about $9 a barrel, or about 19 percent. The rally began on Friday, when oil services firm Baker Hughes said the number of U.S. oil drilling rigs had its biggest weekly decline in nearly 30 years.

"You've got a number of themes working to push the market higher," said Phil Flynn, analyst at Price Futures Group in Chicago.


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Brent Crude Oil : $55.47/BBL 0.69%
Light Crude Oil : $52.48/BBL 0.30%
Natural Gas : $3.41/MMBtu 0.29%
Updated in last 24 hours