Oil extends gains despite weak demand outlook - Reuters

Oil extends gains despite weak demand outlook - Reuters:

Oil prices extended their gains on Thursday, with Brent rising above $61 a barrel as a surprise drop in U.S. crude inventories and the prospect of further market-supporting action by OPEC and its allies offset some concern over the outlook for demand.

Brent crude ended the session up 50 cents, or 0.8%, at $61.67 a barrel, having risen 2.5% on Wednesday.

West Texas Intermediate (WTI) crude settled 26 cents, or 0.5%, higher at $56.23, adding to the previous session’s 2.8% gain after data showed that U.S. inventories dropped by 1.7 million barrels last week.

“We feel that even minor supportive headlines on the trade front or geopolitical developments could prompt an exaggerated price response in a market in which net speculative WTI length had dropped into the red zone,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.