Oil Hits 2016 High Above $40; Glut Warnings Resurface
Source: Reuters
Brent crude rose on Monday, hitting a 2016 peak above $40 a barrel as investors rotated more assets into raw materials, with oil buying encouraged by talk that OPEC producers want a higher anchor price after a selloff that has lasted nearly two years.
Gold and iron ore also were at multi-month highs. Oil prices also got a boost from data showing a smaller-than-expected build in stockpiles at the Cushing, Oklahoma delivery hub for U.S. crude futures. But some analysts cautioned that the global crude glut remained big.
Global crude prices have risen more than 40 percent since hitting 12-year lows less than two months ago. The rebound from lows of around $26 a barrel has also been driven by chart-related buying and asset rotation by investors that resulted in higher allocations into commodities such as oil and metals, as well as equities.
U.S. equities have risen about 8 percent since mid-February. Asian stock markets hit two-month highs. [MKTS/GLOB]
Read more: http://www.reuters.com/article/us-global-oil-idUSKCN0W9045