Oil is on course for the biggest two-day rally in almost three months as improving risk appetite spilled over into crude just as American stockpiles showed slower-than-expected growth.
Futures are headed for a two-day 3.5 percent gain as they join Asian and U.S. equities higher to recoup losses from last week’s global risk-asset rout. Adding to optimism in the crude market is government data showing American stockpiles grew 1.84 million barrels last week, lower than analysts’ forecasts and less than previous increases.
West Texas Intermediate for March delivery was up 65 cents to $61.25 a barrel at 1:15 p.m. in Singapore after rising 2.4 percent on the New York Mercantile Exchange on Wednesday. Prices are on course for their biggest two-day gain since Nov. 24, recovering some of last week’s 9.6 percent decline. Total volume traded was about 57 percent above the 100-day average.
Brent for April settlement rose 78 cents to $64.86 on the London-based ICE Futures Europe exchange. The global benchmark traded at a $3.73 premium to April WTI.
Source : Bloomberg