NEW YORK (APP) – Oil prices rebounded Friday at the end of a volatile week of trading as dealers weighed the global supply glut and slow growth in the world economy.
US benchmark West Texas Intermediate for April advanced $1.59 to close at $49.76 a barrel on the New York Mercantile Exchange, a day after WTI lost almost $3.
In London, Brent North Sea crude for April delivery, the global benchmark, surged to $62.58 a barrel, up a hefty $2.53 from Thursday’s closing level.
WTI, after having fallen in early 2015 to a six-year low, has swung wildly in February, but finally finished the month a little more than $1.5 higher. By contrast, Brent has gained about $12.
Crude oil has lost about 50 percent of its value since June. “We’ve kind of reached the bottom and the prices are just dancing around,” said Michael Lynch of Strategic Energy & Economic Research, referring to the New York oil market.
In Friday’s trading session, Lynch said, “the biggest impact was from the decline in US rig operating data, which suggests we’ll see lower shale production than anticipated, and comments out of Saudi Arabia that the market may be coming back into balance.”
Lynch noted that the Baker Hughes US crude oil drilling rig count fell by 33 rigs this week, which marked a slower decline than recently seen, which has been about 90 rigs per week.
The Department of Energy’s oil inventories report this week showed a jump of more than eight million barrels of crude oil to a record 434.1 million barrels.
“It’s choppy all around the place,” said Bart Melek of TD Securities. “Essentially we’re responding to the view the supplies are going to drop off.”
