U.S. crude oil futures made a comeback on Thursday after hitting their two-year low yesterday.
According to MarketWatch, light, sweet crude futures for delivery in December rose 73 cents, or 0.9 percent, to $81.23 a barrel on the New York Mercantile Exchange. December Brent crude on London's ICE Futures exchange advanced 91 cents, or 1.1 percent, to $85.63 a barrel. Today's gain marked a rebound from yesterday's losses, which left the commodity trading at $80.52 a barrel – its lowest mark since June 28, 2012. Analysts say that yesterday's downward move may have been prompted by the EIA's report that crude supplies were higher than expected.
According to Bloomberg, today's rebound may have been triggered by the small cuts to crude oil production on the part of the Saudi Arabian government. Supplies from the U.S. and OPEC have flooded the market and driven the price to the recent lows.
"The market is reacting instantly to any news on oil fundamentals. The whole market has shifted much more toward reaction on supply news on the oil market rather than political moves," said Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, said by phone today in an interview with Bloomberg.
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