Oil futures were supported up by strong fuel demand as WTI touches $50 per barrel handle

Oil prices

WTI crude started Monday’s session touching the $50 per barrel handle for the very first time since May as futures were reinforced by strong fuel demand. However, the continuous rising output form OPEC made the rising prices limited.

The production of oil by the Organization of the Petroleum Exporting Countries (OPEC) rose as much as 90,000 barrel per day for the month of July. According to a Reuters survey, this went to a 2017-high of 33 million barrels per day. This numbers were brought by Libya’s supply recovery, which is one of the countries exempted to the OPEC and other producer’s deal to curb output more than 1.8 million barrels per day between the beginning of 2017 up to the end of 2018’s first quarter.

On prices; International benchmark Brent crude futures jumped more than 0.1 percent or 6 cents to finish at $52.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures advanced as high as 0.2 percent or 8 cents at $50.25 a barrel, which marks the first time WTI started the day above the $50 per barrel level since May 25.

Commercial crude oil stocks in the United States declined about 10 percent from their 483.4 million barrel peak since late-March and for the first time this year they are currently under the levels of 2016. Regardless of that, there has been an indication that oil markets worldwide have enough supply, which limits prices for jumping further.

International banking group BNP Paribas suggested that the demand for gasoline in the stateside jumped to 2016’s highs but stockpiles in the region dropped, adding that crude oil prices are currently enduring “multiple headwinds” as OPEC struggles to curb output.

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