Oil hits 2016 high above $40 despite glut warnings

GMT 18:59 2016 Monday ,07 March

Arab Today, arab today Oil hits 2016 high above $40 despite glut warnings

Brent crude rose
New York - MENA

Brent crude rose on Monday, hitting a 2016 peak above $40 a barrel as producers sought a new anchor price for oil after a selloff that has lasted nearly two years, although some analysts warned sentiment was overshadowing fundamental oversupply, CNBC reported.

Global crude prices have risen more than 40 percent since two months ago when they hit 12-year lows. Monday's gains were helped by data showing a smaller-than-expected build in stockpiles at the Cushing, Oklahoma delivery hub for US crude futures and talk that OPEC was looking at a $50 bottom.

Oil's rebound from lows of around $26 a barrel was also driven by chart-related buying and asset rotation by investors that resulted in higher allocations into commodities such as oil and copper, as well as equities. US equities have risen about 8 percent since mid-February while Treasuries have weakened. Asian equities hit 2-month highs on Monday. 

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