Oil Caps Biggest 2-Week Gain in 17 Years
February 7th, 2015Disclosure: I’m long oil and multiple companies involved with oil exploration and production.
Via: Bloomberg:
Crude oil capped the biggest two-week rally in 17 years on speculation a falling rig count will curb U.S. production growth. Price volatility rose to the highest in almost six years.
Brent crude jumped 18 percent in the past 10 trading days, the most since March 1998. A volatility index gauging price fluctuations in West Texas Intermediate crude rose this week to to the highest since 2009.
Oil has rebounded as companies including Statoil ASA, BP Plc and Royal Dutch Shell Plc have reduced investments in response to the market’s collapse. U.S. drillers pulled more rigs off oil fields, according to data from Baker Hughes Inc. Friday. Saudi Arabia cut prices for March exports to Asia to the lowest in at least 14 years, signaling OPEC’s largest producer may continue to fight for market share.
