Oil Rises From Two-Week Low Amid Deal to Avert U.S. Shutdown
Added 02-12-19 05:04:02am EST - “Congressional negotiators said Monday in Washington they had reached a deal in principle on border security to avoid closure of the federal government. U.S. crude stockpiles are projected to rise for a fourth week, the longest such…” - Finance.yahoo.com
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(Bloomberg) -- Oil rose from a two-week low as a tentative accord to prevent another U.S. government shutdown reassured investors and boosted financial markets.
Crude futures rose 0.8 percent in New York, after sliding on Monday to the lowest settlement since Jan. 28. Congressional negotiators said Monday in Washington they had reached a deal in principle on border security to avoid closure of the federal government. U.S. crude stockpiles are projected to rise for a fourth week, the longest such run since November, according to a Bloomberg survey before data due Wednesday.
Crude’s rally has fizzled in February as concern the U.S. and China won’t be able to defuse their trade war damps the demand outlook, while a strengthening dollar has reduced the appeal of commodities priced in the currency.
Prices have shown limited response to output reductions by the Organization of Petroleum Exporting Countries and its allies, as well as an escalating political crisis and sanctions against Venezuela.
“The broader market sentiment, risk on and risk off, continues to influence oil prices,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “With high OPEC compliance and healthy oil demand, inventory dynamics might surprise and support prices over the coming months.”
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