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Price of oil bounces back sharply | |
(about 11 hours later) | |
Sharply higher global stocks have pushed oil prices higher, clawing back almost all of Wednesday's big falls. | |
US light crude was up $3.66, or almost 6%, to $67.01 a barrel, while London Brent was ahead by $3.68, at $70.21. | |
US light crude slumped $3.88 on Wednesday after figures showed a rise in US oil stockpiles, indicating too much supply in relation to demand. | |
Renewed confidence in stock markets, sparked by a series of encouraging corporate results, caused the rebound. | |
Volatility | |
With Japan's Nikkei ending up 0.5%, Europe's main markets closing about 2% higher and the Dow Jones in the US up 1.7% by mid-afternoon, investors' confidence in future oil demand returned. | |
But some analysts expressed concern at the volatility in the oil price, particularly as the bounce was sparked by sentiment rather than oil-related news. | |
"You need to really worry about a market that sells off on a very large build of supply one day, and then rebounds on no headline at all," said analyst and trader Stephen Schork. | |
In July last year, the price of oil peaked at around $147 a barrel, before falling back to close to $30 at the start of 2009 due to the impact of the global recession. | In July last year, the price of oil peaked at around $147 a barrel, before falling back to close to $30 at the start of 2009 due to the impact of the global recession. |
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