What's Moving the Oil Markets?

What's Moving the Oil Markets?

•IPE Brent crude futures in London rose sharply in trading on Thursday as funds re-entered the market to take new long positions having realized that they may have over-sold the market as it seeks to re-establish itself above $70/barrel, range driven by strong gasoline demand, brokers said.

•On Wednesday, total open interest on Brent rose sharply to 431,380 lots, having reached a 12 week low of 406,307 lots on Tuesday. "Gasoline strength and demand for light sweet crude is providing support to this rally which has extended yesterday's gains towards the end of the day," a London-based broker said. "It seems to be holding support levels and it looks like it will establish itself back above $70/barrel after sellers realized they made a bit of a mistake and funds are now buying."

•- Gasoline demand was up 0.9% over the past four weeks compared with a year ago at 9.41-million b/d, according to the Energy Information Agency. The build in gasoline stocks was smaller than expected which offset builds in crude.

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