Oil rallies on reappraisal of IEA move |
| Financial Times - Jun 29, 2011 |
Oil prices rallied more than $3 a barrel on Wednesday, recovering all the losses triggered by last week’s decision by rich consuming nations to release strategic oil stocks.
Brent crude, the global benchmark, jumped to a peak of $112.48 a barrel, the highest since last Thursday, when the International Energy Agency announced its members would sell 60m barrels of oil, the third co-ordinated sale from the reserves in the organisation’s history.
Amid heavy selling in the days that followed the IEA’s move, Brent traded as low as $102.28. Since that level was reached on Monday, however, prices have rallied 10 per cent, or just over $10 a barrel.
A reappraisal of the impact of the IEA’s intervention triggered the reversal. Traders have shifted their focus to an expected oil supply squeeze in the next few years instead of the prospect of an additional 2m barrels a day of oil for a month.
Read Full Article from Financial Times
- Posted: 2011-06-29 13:51:04
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