Shutterstock photo
Markets

Crude oil remains supported by news of Saudi King's death

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - Crude oil futures rose on Friday, pulling away from nearly six-year lows as news of Saudia Arabia King Abdullah's death lent support to the commodity, although sustained concerns over a supply glut continued to weigh.

On the New York Mercantile Exchange, U.S. crude oil for delivery in March traded $0.12 or 0.25% higher to $44.43 a barrel during European early afternoon trade.

Prices plummeted $1.47 or 3.08% on Thursday to settle at $46.31.

Futures were likely to find support at $44.78, the low from January 13 and a nearly six-year low and resistance at $49.09, Thursday's high.

Oil prices rallied following reports of the death of Saudi Arabia's King Abdullah amid growing speculation over a possible shift in the kingdom's policy of allowing crude prices to fall.

The 90-year-old monarch, who was admitted to hospital in December with pneumonia, will be succeeded by his half-brother, Crown Prince Salman.

Gains were expected to remain limited however, as the U.S. Energy Information Administration said this week that U.S. crude oil inventories rose by 10.1 million barrels in the week ending January 16, compared to expectations for an increase of 2.7 million barrels.

Total U.S. crude oil inventories stood at 397.9 million barrels as of last week.

Also weighing on the commodity, the European Central Bank announced on Thursday that it is launching a €60 billion monthly bond buying program that would start in March and last until September 2016, in a bid to stave off the threat of deflation in the euro area and boost growth.

The QE announcement pressured the euro and sent the dollar higher, weighing on dollar-denominated commodities.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.60% at a 12-year high of 95.23.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery jumped $0.71, or 1.47%, to hit $49.24 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $4.81.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS!

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.

Other Topics

ForEx