Arab Today, arab today brent crude surpasses 50 a barrel for first time this year
Last Updated : GMT 10:30:52
Arab Today, arab today
Arab Today, arab today

Brent crude surpasses $50 a barrel for first time this year

Arab Today, arab today

Arab Today, arab today Brent crude surpasses $50 a barrel for first time this year

At around 0220 GMT, Brent North Sea crude for July delivery
Singapore - AFP

Brent crude passed $50 a barrel for the first time in 2016 on Thursday after data showed a fall in US crude inventories, adding to expectations of a tightening global market.

At around 0330 GMT, Brent North Sea crude for July delivery was up 33 cents at $50.07 a barrel while US benchmark West Texas Intermediate was trading 29 cents higher at $49.85.

The $50 price point is a key level and traders are watching to see if it can be sustained.

The gains came as markets digested news that US commercial crude oil inventories fell by 4.2 million barrels in the week to May 20, according to US Department of Energy data.

This is largely due to wildfires in the western provinces of Canada -- the biggest supplier of crude to the US market -- which have curbed oil production.

Canada's central bank had also announced Wednesday that the fires would impact the country's economic output numbers.

"News about the US inventory, coupled with Canada's announcement gave prices the boost it needed to push past the $50 mark," CMC Markets trader Alex Wijaya told AFP.

Both pricing standards have been edging close to the $50 mark for a fortnight but a strong US dollar had curtailed gains.

A firmer greenback, which has been performing stronger against major currencies, makes dollar-priced commodities like oil more expensive, hampering demand.

- Rally overdone? -

Some analysts are sceptical about how long the current prices will hold.

Aside from the stronger dollar, major exporter Iran has also vowed to keep up oil production after the lifting of Western sanctions in January, further fuelling the supply glut.

"The remarkable over 80 percent rally in oil since earlier this year may have been overdone, as the underlying macro conditions have not changed proportionally," IG Markets analyst Bernard Aw said in a client note.

"This suggested that speculative trades have driven up the price these months, and may not be sustainable."

The global oil market nosedived from above $100 a barrel two years ago to around $27 in early 2016, plagued by a stubborn glut.

Prices have since rebounded, aided by the weeks of wildfires in Canada as well as unrest affecting energy infrastructure in Nigeria, Africa's biggest oil exporter.

Markets are now eyeing a June 2 meeting of the Organization of the Petroleum Exporting Countries in Vienna where it is hoped a deal on reducing production can be reached.

But Tehran's stance appeared to reinforce market doubts that OPEC -- of which Iran is a member -- will take any firm action to curb oversupply.

Last month, talks in Doha involving OPEC members and other major producers such as Russia failed to reach a deal to cap production.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brent crude surpasses 50 a barrel for first time this year Arab Today, arab today brent crude surpasses 50 a barrel for first time this year

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brent crude surpasses 50 a barrel for first time this year Arab Today, arab today brent crude surpasses 50 a barrel for first time this year

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday