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Oil hits 2016 high

Written by Business World, on 27th Apr 2016. Posted in World

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Oil hit 2016 highs and was on track to its largest monthly gain in a year on Wednesday as the market awaited a U.S. government supply-demand report that an industry group indicated will show lower crude stockpiles.

The Energy Information Administration (EIA) will issue its report for the week ended April 22 at 10:30 a.m. EDT (1430 GMT).

A Reuters poll of analysts on Tuesday forecast an U.S. crude stock build of 2.4 million barrels for last week, before the American Petroleum Institute (API) surprised traders and investors by reporting a drawdown of 1.1 million barrels.

"We'll have to see what the EIA shows but a net draw is certainly what the market was looking for," said Scott Shelton, broker and commodities specialist with ICAP in Durham, North Carolina.

Brent crude futures were up $1 at $46.74 a barrel by 9:57 a.m. EDT (1357 GMT), having hit a 2016 high of $47.05 earlier.

Brent is up 18 percent so far in April, heading for its largest monthly gain in a year.

U.S. crude's West Texas Intermediate futures rose 96 cents to $45, after setting its highest level for the year at $45.18.

Oil prices were further underpinned by a weaker dollar that boosted commodities denominated in the greenback. The dollar fell ahead of a policy statement due from the U.S. Federal Reserve at 2:00 p.m. (1800 GMT) that is likely to leave interest rates unchanged. (Reuters)

Source: www.businessworld.ie

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