Oil extends charge in bull market

london — Oil rose in a bull market after data showed a surprise decline in US crude stockpiles, taking the Opec and its allies closer to a goal of reducing a global glut.

Futures added as much as 1.4 percent in New York after rising 0.5 per cent on Wednesday. Crude inventories fell by 1.85 million barrels last week after analysts surveyed by Bloomberg forecast an increase. US exports jumped 61 per cent to 1.49 million barrels a day, the Energy Information Administration reported. In Libya, production neared the one million-barrela-day mark as disruptions eased.

Oil has entered a bull market on forecasts for rising demand, the return of US Gulf Coast refiners after Hurricane Harvey, and as Turkey threatened to halt Kurdish crude exports through its territory. The Organisation of Petroleum Exporting Countries and Russia are urging producers to stay the course as planned supply-curbs start to drain a surplus. At the same time, while U.S. production is at the highest

the combination of muted supply growth and strong demand is helping prices higher

Giovanni Staunovo, Analyst at UBS Group

since July 2015, it had the smallest gain this month. “The combination of muted supply growth and strong demand is helping prices higher,” said Giovanni Staunovo, an analyst at UBS Group.

“The overhang is being removed. Overall, the bullish sentiments remain.” West Texas Intermediate for November delivery was at $52.73 a barrel on the New York Mercantile Exchange, up 59¢, at 10:49am London time. Total volume traded was about 28 per cent above the 100day average. Prices increased 26¢ to $52.14 on Wednesday. Brent for November settlement gained 50¢ to $58.40 a barrel on the Londonbased ICE Futures Europe exchange, after losing 54¢ on Wednesday. The global benchmark crude traded at a premium of $5.67 to WTI. — Bloomberg