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Oil up 4 percent in technical rally after two-month lows

Published 12/07/2016, 17:28
© Reuters. A tank truck passes through Rumaila oilfield in Basra, Iraq
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By Barani Krishnan

NEW YORK (Reuters) - Oil prices surged as much as 4 percent on Tuesday in a technical correction and on short covering after a two-month lows hit in the previous session, traders said.

Anticipation that data later on Tuesday would show an eighth straight week of declines in U.S. crude stockpiles also boosted the market.

Brent crude futures (LCOc1) were up $1.95, or 4.2 percent, at $48.20 per barrel by 12:09 p.m. EDT (1709 London time).

U.S. crude's West Texas Intermediate futures (CLc1) rose $1.77, or 4 percent, to $46.53.

Brent and WTI had been up about 2 percent in early New York trading, riding on a weaker dollar and rally in global equity markets.

© Reuters. A tank truck passes through Rumaila oilfield in Basra, Iraq

"The sharper move up caught everyone by surprise as there's probably short covering adding on to the technical buyback," said a crude futures broker.

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