Rally in oil boosted by IEA comment on ‘stretched’ supply cushion
Oil prices also found support from a US stocks report showing that US crude stocks fell by nearly 13-million barrels last week
London — Oil prices rallied on Thursday, recouping some ground following sharp losses the previous session after Libya said it would resume oil exports. The rally received an extra boost from the International Energy Agency (IEA), which said the world’s oil supply cushion "might be stretched to the limit" due to production losses. Benchmark Brent crude oil rose $1.66, or more than 2.2%, to a high of $75.06 a barrel before easing back to trade at about $74.80 by 8.15am GMT. On Wednesday, Brent had slumped $5.46 or 6.9%. US light crude gained 50 US cents to $70.88 a barrel, after falling 5% the previous session. "The market fell out of bed yesterday as support failed [but was] … probably overdone to the downside," said Robin Bieber, technical analyst at London brokerage PVM Oil Associates. "Sharp attempts to recover are to be expected." An announcement by Libya’s National Oil Corp that four oil export terminals were reopening, ending a standoff that had shut down most of Libya’s oil o...
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