Oil Prices Rally To 6-Week High Amid Demand Concerns
Sep, 01st 02:45
Oil futures took a sudden, sharp turn higher Monday to score a monthly gain of more than 4% and settle at their highest level in nearly 6 weeks.
Prices were on track to suffer a third straight monthly loss until a U.S. government report showed a roughly 1% decline in monthly crude production and a bulletin from the Organization of the Petroleum Exporting Countries expressed the group’s concerns over the low price of oil.
October West Texas Intermediate crude settled at $49.20 a barrel, up $3.98, or 8.8%, on the New York Mercantile Exchange. Based on the most-active contracts, prices were up about 4.4% for the month—the first gain since May. The daily settlement was also the highest since July 21.
WTI futures on Aug. 24 posted a six-and-a-half year low at $38.24 a barrel.
Including Monday’s rally, WTI prices have tallied a three-session gain of 27.5%, or more than $10 a barrel.