Tuesday, 26 October 2021

Crude extends rally as output cuts begin

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HONG KONG: Oil prices rose as massive output cuts began to kick in and top producers said they would turn the taps lower, while there were also hopes for a pick-up in demand as economies slowly reopen.

After a diabolical month for the commodity in which the May WTI contract fell to a mind-boggling minus $40, investors were a little more upbeat about the outlook, though analysts warned the market was not yet out of the woods.

In early trade, US benchmark WTI for June rose 3.3 percent at $19.47, having piled on 25 percent in each of the previous two days.

Brent for July delivery gained 2.5 percent to $27.13 on its first day of trading, with the June contract closing without any of the flurry of selling suffered by US oil two weeks ago.

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