Oil futures rise as market overlooks record-high US stocks to focus on signs of improving demand

26-Feb-15

Oil futures rose as traders overlooked record-high U.S. inventories to focus on signs of improving demand, as per wsj.com. Light, sweet crude for April delivery rose by 3.5%, to US$50.9 a barrel on the Nymex, while Brent spiked by over 5% to US$61.6l on ICE Futures Europe. In the US, crude stockpiles rose for the seventh consecutive week in the week ended Feb. 20, gaining 8.4 million barrels to 434.1 million barrels, the U.S. Energy Information Administration said- the highest level ever in EIA weekly data going back to August 1982. However signs indicate that demand is bouncing back. Freezing weather in the eastern U.S. has fuelled strong demand for heating oil while frigid temperatures have prevented some ships from unloading in the Northeast. Also, figures indicate that Chinese manufacturing is no longer contracting, as it had in December and January, leading to some bullishness.