Oil prices rallied to a six-month highs on Monday after Goldman Sachs posited that the market is now in a supply shortfall thus moving prices for a commodity that has been under pressure from a sever glut for almost two years.
Expectations of resumption in oil exports from a Libyan port, a ramp up in Nigerian crude production by Exxon Mobil Corp and an improved oil-for-loans deal reached by Venezuela with China furthered the tempered the bullish theme in oil.
Brent crude futures settled up $1.14, or 2.4 percent, at $48.97 per barrel. It rallied to $49.47 earlier, its highest since early November, in a test towards $50.
U.S. crude’s West Texas Intermediate (WTI) futures rose by $1.51, or 3.3 percent, to end at $47.72 after touching a six-month high at $47.85. WTI saw a flurry of late buying, with more than 13,600 lots changing hands in the final minute, according to Reuters data, in an attempt to test $48.
Pollyana Davy, Readers Bureau, Fellow
Edited by Jesus Chan
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