Commodity Blog

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Oil Shows Strong Rally

March 16, 2016 at 22:26 by Vladimir Vyun

Prices for crude oil surged today. There were various reasons for the strong rally. One of them being the meeting of producers from both within the Organization of Petroleum Exporting Countries and from outside of the OPEC planned in Qatar for April. Participants will be discussing output freezes.

Another positive factor was the supply report from the Energy Information Administration. It showed that US stockpiles grew by 1.3 million barrels last week, less than analysts had predicted.

And yet another supportive event was the monetary policy announcement from the Federal Reserve. It was rather dovish, promising relatively low interest rates for extended time. This means cheap money will be available for investors for longer, and it is good for commodities.

April futures for delivery of WTI crude oil surged as much as 5.83% to $38.46 per barrel as of 22:21 GMT on NYMEX today. May Brent crude soared 3.92% to $40.26 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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