Oil rebounds on Nigerian woes, USD selling

After a massive slump seen a day before, oil prices on both sides of the Atlantic found some respite from Nigeria pipeline attack news, while broad USD weakness also lifted the prices from multi-week troughs.

WTI holds above $ 45

Currently, both crude benchmarks rebound almost 1%, with Brent around $ 47.50 while WTI nears $ 46 mark. Oil staged a minor-comeback and reversed a part of yesterday’s sell-off on the back of reports of an attack on a Nigerian oil pipeline.

While persistent broad based US dollar weakness amid US elections-led uncertainty, also lifts the sentiment around oil. A weaker US dollar makes oil less expensive for holders in foreign currencies. Further, optimistic comments from OPEC’s Secretary General Barkindo also sent oil prices higher.

On Wednesday, oil prices extended its losing streak and fell more-than 3% to fresh two-month lows, after the EIA crude stockpiles report showed a record high crude stocks build last week.

The US crude stockpiles soared more than 14 million barrels last week, the largest weekly build since the EIA started keeping records in 1982, Reuters reported.