US Crude Jumps 6% In Second Day Of Short-Covering Frenzy
NEW YORK, Aug 28 (Reuters) - U.S. crude rose 6 percent on Friday, notching its first weekly gain in two months, after a rally in gasoline from refinery outages and concerns about strife in Yemen fed a second frenzied day of short-covering in oil.
Market players also kept an eye on a storm that appeared to be approaching the oil-rich U.S. Gulf of Mexico.
U.S. crude gained nearly 17 percent over two sessions, ending eight straight weeks of losses. It was also the second largest two-day rise for the market in 25 years, Reuters data showed.
"A severely oversold and shorted oil market is creating a bid for covering in U.S. crude," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.
U.S. crude's front-month contract settled up $2.66, or 6.3 percent, at $45.22 a barrel. At its session high, it was up more than $3, or 7 percent at nearly $46. For the week, it rose 12 percent.
Brent, the global benchmark, closed up $2.49, or 5 percent, at $50.05 a barrel, after hitting a session peak at $50.98. It gained 10 percent on the week.
Gasoline prices rose about 5 percent after Phillips 66 unexpectedly shut down a 150,000-barrel-per-day fluid catalytic cracker at its 238,000 bpd refinery in Linden, New Jersey, due to a leak.
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