Oil rebounded above $70 (€47.64) a barrel today, clawing back some of the previous session's losses, amid the market's exuberance over a global economic recovery getting underway, while a weak US dollar also lent support.
Oil settled down nearly 2 per cent yesterday after US government data showed larger-than-expected supply increases in gasoline and distillate fuels last week.
US crude for November delivery rose 59 cents to $70.15 a barrel by 4:15am (Irish time). The contract closed $1.31 lower at $69.57 a barrel last night.
London Brent crude gained 82 cents to $68.02.
The US dollar was again on the defensive today, supported by an overall bullishness about a global recovery.
Still, some analysts have doubts on whether oil will rise beyond the $75-mark, as the market remains well supplied and the global economic recovery, along with energy demand, remains fragile.
The Energy Information Administration reported gasoline stocks leapt 2.9 million barrels last week, nearly three times the build that analysts had expected.
Distillate stocks- which include diesel and heating oil - rose by 700,000 barrels, more than double the forecast 300,000-barrel build.
Reuters