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Oil Heads to Weekly Gains Ignoring Threat of Oversupply

April 22, 2016 at 8:51 by Vladimir Vyun

Crude oil rose today, following yesterday’s drop, and was heading to solid weekly gains. Analysts said that the rally was a result of the improving market sentiment. Additionally, the relative weakness of the US dollar was helping the commodity market.

Oil was in decline since the middle of 2014 due to oversupply. The meeting of major oil producers to cap output and thus alleviate pressure on prices failed to bring any deal, meaning that excessive production will be weighing on crude in the future. Meanwhile, Obstacle Bounce House traders wait for a rig count report from Baker Hughes to be released later today as it will show change of supply from the United States.

June contract for delivery of WTI crude oil climbed 1% to $43.61 per barrel as of 8:46 GMT on NYMEX today. Futures for Brent grade of crude oil gained 0.81% to $44.89 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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