Oil prices keep fighting for gains
On Monday, crude oil prices struggled, at times growing on hopes that a sag in US oil rigs would drasticvlaly ease oversupply while stronger consumer spending in that country would power demand for oil.
In New York light, sweet crude futures for April delivery trasded at $32.69, a $0.08 decrease. In London, April Brent crude furutures grew $0.07, hitting $35.51 a barrel.
In January, American consumer spending rose at the fastest clip for eight months, and new data relased on Friday, robust wage gains as well as strong job market encouraged Americans’ prospensity to spend.
The given pickup followed other crucial improvements acros American economy, including stronger retail sales as well as home purchases. Then, Thursday’s report unveiled new orders for big-icket durable goods surged last month, thus following their worst annual performance since the downtime, dropping a hint that American manufacturing sector could be on the mend.
It’s undoubtedly great news for oil. It’s because it gives a clear signal for higher future demand.
Tepid demand growth and oversupply have already brought down prices by approximately since mid-2014. Financial analysts point out the persistently low prices are forcing some high-cost producers, including those in North America, to trim their production to cut costs.