By: Mahmoud Gamal
Mubasher: Oil prices rallied on Wednesday, backed by the decline of US oil inventories and US dollar, as well as selective buying.
Oil stockpiles fell by 7.6 million barrels last week to reach 498.8 million barrels, according to the American Petroleum Institute (API) weekly inventory data.
US crude for November delivery rose .97% or 47 cents to reach $49.16 by 4:06am GMT.
The Brent crude futures contract for December delivery went up 0.88% or 45 cents to reach $51.32 per barrel during the same time.
“Current prices of oil encouraged some traders to speculate to cover their losing positions, amid reduced operating rates of refineries,” according to George Albatroni, the Middle East sales manager in ActivTrides.
Oil prices rose due to a decline in US dollar, Albatroni noted. The US Dollar index (DXY) fell 0.14% to reach $95.97 during the same time.
Translated by: Julian Nabil
