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Oil Trades Above $50, Natural Gas Plunges to 32-Month Low

February 5, 2015 at 18:39 by Vladimir Vyun

Crude oil rallied today following yesterday’s massive losses, trading above the $50 level. It looks like market participants considered the previous drop excessive and found the low prices attractive. Still, prospects for oversupply on the market remain a major long-term negative factor for the commodity. March futures for WTI crude oil climbed as much as 6.15 percent to $51.43 per barrel as of 18:22 GMT on NYMEX today. Brent crude gained 5.61 percent to $57.20 per barrel on ICE.

Meanwhile, natural gas extended its decline, reaching the record low since June 2012, due to the bearish official supply report. While US gas inventories shrank by 115 billion cubic feet last week, according to the report from the Energy Information Administration, the decline was still smaller than the predicted drop by 119 billion. Coupled with the weather forecasts, fundamentals look very negative for the commodity. Contract for natural gas lost 1.69 percent to $2.62 per million British thermal units, reaching the minimum of $2.58 intraday.

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

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