August Nymex WTI futures are trading higher Thursday, extending their gains from the previous session. August WTI, which expires on Friday, ended the session 65 cents, or 0.7%, higher at $89.87, with prices underpinned by geopolitical issues involving violence in Syria and rising tensions in Iran. Prices have also received a boost after the Fed downplayed risks of a double-dip recession. Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee, in a second day of congressional testimony, that the Fed did not expect the US economy to slip back into recession, which in turn helped sooth fears surrounding the slowing demand for oil in a faltering economy. In terms of supply, the EIA report, published Wednesday afternoon, showed that US crude stocks fell by 800,000 barrels, less than the 1.1mln barrels drop that had been forecast. Also on the bearish side, the build in distillate stocks of 2.6mln barrels was above the 1.3mln that had been projected, with the forecast for a rise in gasoline of 800,000 barrels coming in at a decline of 1.8mln barrels. WTI last $90.71, up 84 cents.
EasyForexNews Research Team