US crude futures surge $2.86/bbl on stock market rally

01 August 2013 20:46  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for September delivery posted strong gains for the second consecutive session on Thursday, settling at $107.89/bbl, up $2.86, tracking a rally in global stock markets, in response to a series of upbeat economic data from China, the eurozone and the US.

A jump in factory and industrial activity in China and the eurozone, where central banks also emulated the US Federal Reserve in leaving economic stimulus in place, boosted shares overnight.

In the US, a decline in initial jobless claims and better-than-expected manufacturing activity suggested an expansion in the labor market, which would translate into growing energy demand.

The optimism lifted September West Texas Intermediate (WTI) up to $108.06/bbl, up $3.03, before the rally was capped. On Wednesday, crude futures rose $1.95/bbl in response to falling inventories at the Cushing, Oklahoma, key storage hub.

ICE Brent for September delivery again lagged behind its American counterpart, topping out at $109.64/bbl and settled just off the top of the range at $109.54/bbl, up $1.84.

By: Ignacio Sotolongo
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