Oil Update: Oil Prices cross $50 mark since May [BRENT $52.78 +0.1%, WTI $50.25 +0.2%]

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Prices for WTI crossed the 50 dollar mark since May for the first time, supported by strong fuel demand but the future seems bleak as the production continues to add on to the oil glut.

U.S. West Texas Intermediate (WTI) crude futures were at $50.25 per barrel at 0127 GMT, up 8 cents, or 0.2 percent, from their last close. That marked the first time U.S. crude had opened above $50 per barrel since May 25.

Brent crude futures, the international benchmark for oil prices, were trading up 6 cents, or 0.1 percent, at $52.78 per barrel.

US demand for gasoline has risen in the current year, as the rising US demand has helped prices go slightly uppish. Overall US commercial demand has risen in the months since March, peaking at 483.4 million barrels. Despite the rising demands, the oil markets continue to be well supplied, halting any hike in prices.

Organization of the Petroleum Exporting Countries (OPEC) has risen their oil output this month by 90,000 barrels per day (bpd) to a 2017-high of 33 million bpd, led by a further recovery in supply from Libya, one of the countries exempt from OPEC deal.

This rise comes despite a pledge by OPEC and other producers, including Russia, to cut output by 1.8 million bpd between January this year and March 2018.

Posted on: 2017-08-01T14:39:00+05:00

Data is delayed by 20 minutes

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