Oil Takes Fresh Hit as China Says Stockpile Release in the Works - Bloomberg

Oil Takes Fresh Hit as China Says Stockpile Release in the Works - Bloomberg

PRICES:
Western Texas Intermediate crude for December delivery rose 65 cents to settle at $79.01 a barrel in New York. Brent for January settlement rose 96 cents to settle at $81.24 a barrel.

Oil rose in choppy trade as recent declines below $80 lured some investors back for bargains while the market waited to see whether the U.S. would match China’s plans to release strategic reserves.

Futures in New York closed up 0.8% on Thursday. Buyers were attracted by lower prices after both crude benchmarks fell below their 50-day moving averages in the previous session. Political headlines kept trading volatile. China is releasing some oil from its strategic reserves days after the U.S. invited it to participate in a joint sale as both nations work together to keep a lid on energy costs.

“With lots of political talk trying to chase the market lower, WTI seems to be getting some support at $78, for now, after coming off from the mid-$80s last week,” said Spencer Vosko, director for crude oil at Black Diamond Commodities LLC.