US crude futures surge $2.61/bbl on pre-holiday short covering

24 November 2010 20:48  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for January delivery settled at $83.86/bbl on Wednesday, up $2.61, tracking a rally in the stock market and triggering a round of short covering ahead of the Thanksgiving holiday weekend.

The market shrugged off Wednesday’s supply statistics from the Energy Information Administration (EIA), which reported a build in oil inventories.

Gasoline reformulated blendstock for oxygenate blending (RBOB) prices on the NYMEX also surged even though the EIA statistics also revealed a build in stocks, which was contrary to expectations.

Economic data showing a rise in consumer spending and a drop in weekly unemployment benefit claims supported the advance in the stock market.

Despite the euro turning negative against the dollar, January crude rose to $83.97/bbl before retreating ahead of the closing bell.
 
January ICE Brent established a high of $85.94/bbl before closing at $85.84, up $2.59.

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By: Ignacio Sotolongo
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