Monday, May 16, 2016

"Oil prices soar to seven-month highs in wake of global supply disruptions"

Brent $48.77 up 94 cents; WTI $47.10 up 89 cents.
From City AM:
Oil prices rebounded to a seven-month high this morning, lifted by disruptions to oil output in Nigeria and the usually bearish Goldman Sachs taking a bullish turn on the market.

The price of Brent crude jumped 2.2 per cent during morning trading to a high of $48.90, the highest level since October 2015.

Meanwhile, the price of the US benchmark West Texas Intermediate (WTI) had risen by 2.06 per cent by late-morning trading to $47.16. 

Political tensions in Venezuela, which instituted a state of emergency on Friday, also helped to boost both prices. 

Supply disruptions of around 3.75m barrels per day have brought an end to the glut that wiped out prices by around 70 per cent in 2014, , leading to a 13-year low in January of this year. 

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman Sachs said in response to the disruptions....MORE