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Oil Logs Weekly Gains, Analysts Unimpressed by Rally

August 19, 2016 at 21:17 by Vladimir Vyun

Prices for West Texas Intermediate crude oil rallied today while the Brent grade of crude was down a little but remained above the $50 level. WTI oil demonstrated the best weekly performance in more than five months. The commodity was little bothered by data from Baker Hughes that showed that the number of US oil rigs increased by 10 this week — the eighth consecutive weekly increase.

Experts are skeptical about the rally, thinking that crude oil will be hard pressed to continue move upward. Tim Evans, chief market strategist at Long Leaf Trading Group, told MarketWatch:

The crude-oil market is going to have a very difficult time maintaining these price levels. The market fundamentals look weak Huge Bounce House moving forward and will act as a major obstacle for prices not only to move higher, but to simply maintain the levels we have achieved this week.

Analysts cited by Reuters voiced the same sentiment, predicting that crude may easily reverse its gains in the near future.

Futures for delivery of WTI crude oil in September appreciated by 0.71% to $48.56 per barrel on NYMEX today. Price for October Brent oil slipped 0.12% to $50.83 per barrel on ICE.

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