Oil headed for the biggest weekly advance since April after the biggest one-day jump in six years as the U.S. economy expanded more than predicted.
Futures were little changed in New York after surging 10 percent on Thursday, the most since March 2009. U.S. gross domestic product grew at a 3.7 percent annualized rate in the second quarter, exceeding all estimates of economists surveyed by Bloomberg. Crude stockpiles in the world’s biggest oil consumer unexpectedly decreased last week, according to a report Wednesday from the Energy Information Administration.
Oil has rebounded above $40 a barrel and is set for the first weekly gain in nine weeks after slumping to a six-year low Monday as concern over slowing demand in China fueled volatility in global markets. Prices are still down more than 30 percent from this year’s closing peak in June on speculation that a global supply glut will be prolonged.
West Texas Intermediate for October delivery was at $42.67 a barrel on the New York Mercantile Exchange, up 11 cents, at 8:49 a.m. Sydney time. The contract gained $3.96 to $42.56 on Thursday. The volume of all futures traded was about 62 percent below the 100-day average. Prices have decreased 20 percent this year.
Brent for October settlement rose $4.42, or 10 percent, to $47.56 a barrel on the London-based ICE Futures Europe exchange on Thursday. The European benchmark crude ended the session at a premium of $5 to WTI.
Source : Bloomberg