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Crude oil futures ease off 4-month low on bargain buying

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Forex Pros - Crude oil futures edged higher on Thursday, easing off a four-month low, as the previous day's steep decline created bargain buying opportunities for investors.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD95.50 a barrel during European morning trade, gaining 0.27%.

It earlier rose to a daily high of USD95.57 a barrel.

Crude oil prices plunged nearly 5% on Wednesday, the biggest one-day decline in almost two years, as escalating fears over a possible Greek default and concerns over the U.S. economic outlook saw risk aversion escalate.

However, the sharp price decline triggered some bargain buying from traders reluctant to bet that prices would fall further after U.S. crude oil inventories fell significantly more-than-expected last week.

Government data released on Wednesday showed that U.S. crude supplies declined by 3.4 million barrels last week, surpassing expectations for a withdrawal of 1.5 million barrels.

Total motor gasoline inventories increased by 0.6 million barrels, below expectations for a 1.0 million barrel increase.

The U.S. is the world's largest oil consumer.

Meanwhile, global financial service provider JP Morgan said that oil prices may be on track to fall to the USD90-a-barrel range, after prices fell below their 150-day moving average on Wednesday.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery added 0.7% to trade at USD114.47 a barrel, up USD18.97 on its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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