LONDON: Brent crude rose over US$103 a barrel yesterday as bullish US consumer data overshadowed the effect of persistent supply pressure and weak economic data in most countries that are major users.
The benchmark is headed for a second straight monthly decline in August as slow growth in China and Europe has curbed oil demand and led to a supply glut in the Atlantic Basin, offsetting the impact on prices from world political tensions.
Brent crude rose 68 cents to $103.33 a barrel by 1406 GMT, adding to a gain of 36 cents the previous day. U.S. crude, or West Texas Intermediate (WTI), gained 88 cents to $94.23 a barrel, after rising $1 to $94.35 a barrel on Monday.
“The Brent price appears to be bottoming out at US$102 per barrel following its pronounced slide in recent weeks, speculative financial investors having now largely exited the market,” Commerzbank wrote in a daily commodities note.
On Monday, hedge funds and other big speculators cut their bets on rising Brent crude oil prices to the lowest level in just over two years. Reuters