Oil climbed more than two per cent yesterday despite expectations of another large build in US crude stock. Some traders said they did not think oil was on the cusp of an extended recovery due to nagging worries about the global oversupply in crude.
West Texas Intermediate (WTI) crude finished up US$1.08, or 2.4 per cent, at US$46.23 a barrel, after peaking at US$46.55. Benchmark Brent crude was up US$1.44, or three per cent, at US$49.60 a barrel after rallying to just a penny short of $50. The last time Brent was at $50 was on January 22.
Oil prices have slumped nearly 60 per cent since peaking in June, driven lower by ample supplies from the US shale oil boom and the Organisation of the Petroleum Exporting Countries' decision not to cut output.