Oil Up Second Day As Covering Support Stops Slide To 11-Year Low

Reuters

NEW YORK, Dec 15 (Reuters) - Oil prices rose for a second straight day on Tuesday as short-covering and technical support halted a slide to 11-year lows, but the market remained fundamentally weak from oversupply, traders and analysts said.

Government data on U.S. crude inventories and an expected Federal Reserve interest rate increase would dictate Wednesday's direction, they said.

Brent crude futures settled up more than 1 percent while U.S. crude's West Texas Intermediate (WTI) futures rose nearly 3 percent as oil bears once again failed to push prices to below a seven-year trough.

"Everyone was looking at 11-year lows, but I think people got a sense of 'bids' when they tried probing there," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland. "But I'd be surprised if they don't come back and take it down."

Brent settled up 53 cents at $38.45 a barrel, after reaching a session high at $39.41. On Monday, the global oil benchmark came within 14 cents of a December 2008 bottom of $36.20, unleashing a surge of buying support.

WTI settled up $1.04 at $37.35. It fell to $34.53 on Monday, the lowest since its financial crisis bottom of $32.40.

"People are buying on the dips," said Jeffrey Grossman, crude dealer at New York's BRG Brokerage who expects Brent to return closer to the $40-a-barrel level it fell under last week.


123

View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Manager- Retail Power Settlements & Accounting
Expertise: Accounting|Budget / Cost Control|Gas Plant Operations
Location: Houston, TX
 
Global Strategic Accounts Sales Director - Process Automation
Expertise: Sales
Location: Houston, TX
 
United States San Antonio: Account Manager
Expertise: Business Development|Sales
Location: San Antonio, TX
 
search for more jobs

Brent Crude Oil : $48.69/BBL 5.91%
Light Crude Oil : $47.05/BBL 5.32%
Natural Gas : $2.952/MMBtu 1.60%
Updated in last 24 hours