28 August 2015, News Wires – Oil prices steadied on Friday after bouncing back from six-and-a-half-year lows on recovering equities markets, strong US economic growth and news of low crude supplies from Nigeria, Reuters reported.
Oil saw its biggest one-day bounce since 2009 on Thursday, with North Sea Brent and US light crude rising more than 10%. US crude is on track for its first weekly gain in nine weeks, ending its longest losing streak since 1986, according to the news wire.
Brent was down $0.10 at $47.46 a barrel by 1:50pm GMT. It settled $4.42 higher at $47.56 on Thursday. US crude was down $0.10 at $42.46 a barrel, after ending up $3.96, the news wire said.
Global oil markets have fallen by a third since May and are still well under half their value a year ago thanks to a huge oversupply of fuel and sluggish demand. Worries over China’s economy have compounded the falls in recent weeks.
But analysts said oil markets fell too far, too fast and a rebound was overdue. A stock market rise, strong US growth data and a pipeline outage in Nigeria provided excuses for a sharp rally on Thursday, they added.
“A price recovery was on the cards at any time given that oil prices had slumped virtually continuously since the end of June by a total of more than 30%,” Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt, told Reuters.
Equities and commodities markets stabilised on Friday. Chinese stocks ended up for a second day following a rocky start to the week, it said.