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Closure of US Oil Rigs Supports Crude Oil Rally

February 3, 2015 at 18:14 by Vladimir Vyun

Futures for crude oil jumped today, climbing to the highest level in a month, as the number of US oil rigs demonstrated the biggest weekly decline in almost 30 years. This eased concerns about global supply glut that were plaguing the energy market previously. Prices have risen more than 13 percent since Thursday.

There were other reasons for the crude oil rally too. One of them was weakness of the US dollar. Another one was the private report that showed stable growth of the US manufacturing sector.

The rally left market analysts divided. Some believe that oil prices have found a bottom and will likely continue to rise. Others remain bearish and think that traders may see new lows this year.

March futures for WTI crude oil jumped as much as 3.03 percent to $51.07 per barrel as of 18:09 GMT on NYMEX today, rising to the daily high of $51.53 earlier — the strongest price since for a most-active contract since January 15. Brent grade of crude added 2.48 percent to its value trading at $56.11 per barrel on ICE, rising to $57.17 intraday — the highest level since January 2.

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