9th October 2015
Crude oil prices surged to their highest level in three months this week, as markets pushed back expectations for an interest rate rise in the US.
Brent crude rallied to over $53 a barrel, taking its weekly gain to ten per cent, while US light crude was trading above $50.
Oil got support from a broad risk-on rally after minutes from the Fed’s September meeting indicated that the US central bank may delay the first rate hike in nearly a decade until early 2016.
Also boosting oil was the bullish outlook from OPEC secretary-general Abdalla Salem El-Badri, who said global demand will rise this year more than previously anticipated.
Investors are also looking ahead to a report from Baker Hughes, which last week said the number of rigs drilling in the US has fallen to its lowest since August 2010.
Crude prices are down by around 50 per cent since OPEC’s decision last November to leave production unchanged at 30 million barrels a day.
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