Oil Settles at Six-Month High as Market Weighs Supply Balance
- Nigeria reduces output, U.S. crude stockpiles fell last week
- Canadian producers plan to bring production back online
Oil Production and the Fundamentals of Supply and Demand
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Oil settled at the highest level in more than six months as the market weighed concern of a reduction in global crude supply with Canadian producers planning to resume oil-sands output.
Futures seesawed between gains and losses in intraday trading in New York before settling above $46 a barrel for a second day. Producers in Canada plan to resume output at some oil-sands sites after wildfires took production offline, while Nigeria said militant attacks have cut output by as much as 600,000 barrels a day. U.S. inventories dropped by 3.4 million barrels last week, government data showed Wednesday.