SINGAPORE (Reuters) – Oil futures rose on Thursday being an attack on the Nigerian oil pipeline along with a less strong U.S. dollar buoyed sentiment on the market, lifting prices from five-week lows.
Brent crude was buying and selling up 50 cents, or 1.1 %, at $47.36 a barrel by 0640 GMT. U.S. crude was up 40 cents, or .9 %, at $45.74 per barrel.
Crude prices were underpinned by concerns about supply disruptions after militants in Nigeria’s southern Niger Delta oil hub attacked a pipeline run by the Nigerian National Oil Corporation on Wednesday.
“The marketplace is definitely just a little responsive to (news about supply disruptions),” stated Ric Spooner, chief market analyst at CMC Markets.
A softer dollar also buoyed prices by looking into making the dollar-denominated oil less pricey for importing countries.
The dollar tucked for any third session as positioning for next week’s U.S. presidential election overshadowed the government Reserve’s latest review, where policymakers signaled these were on the right track to hike rates the following month.
On Wednesday, both oil benchmarks hit their cheapest since late September after data demonstrated U.S. crude stockpiles soared greater than 14 million barrels a week ago, the biggest weekly build because the U.S. Energy Information Administration began keeping records in 1982.
“The recovery (in oil prices) has more details on the truth that it hit a powerful support around $46.50 a barrel,” a Singapore-based oil broker stated, talking about Brent that hit a minimal of $46.46 within the prior session. U.S. crude fell to $44.96 on Wednesday.