Oil gains as demand for US stockpiles draw
Picture used for illustrative purpose. File
Gulf Today Report
Oil rose on Thursday as US stockpiles recorded a drawdown due to holiday trade and hints for a Brexit deal soon excited investors.
Brent crude futures rose 38 cents, or 0.7%, to $51.58 a barrel by 05:30 GMT while US West Texas Intermediate (WTI) crude futures increased 31 cents, or 0.6%, to $48.43.
Oil rose on Thursday as US stockpiles recorded a drawdown due to holiday trade and hints for a Brexit deal soon excited investors.
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Hiroyuki Kikukawa, general manager of research at Nissan Securities said investors are in holiday mode and worried about the new coronavirus variant, hence, limiting gains.
US stockpiles declined by 562,000 barrels to 499.5 million barrels on Wednesday.
Supporting gains of oil prices is the news of a Brexit deal coming soon.
"Risk appetite among investors improved also because of a rebound in global equities, which underlined that fears over a new variant of the coronavirus have receded a little," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
