Oil rallies as US revises output estimates down

Caitlin Morrison
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CRUDE oil prices jumped yesterday, on news that the US oil industry pumped less of the commodity than initially estimated this year.

The US Energy Information Administration yesterday cited survey data estimating that the US pumped out just below 9.3m barrels per day (bpd) in June, down by 100,000 bpd from estimate figures in May.

The movement in prices continued an upward trend that began last week on news that Venezuela has appealed to its fellow Organisation of Petroleum Exporting Countries (Opec) members to hold an emergency meeting focusing on the recent market rout. Venezuela's approach to its Opec peers followed reports that concerns around China had prompted the organisation to reexamine its stance of maintaining oil supply at current levels.

US benchmark West Texas Intermediate was up by around 27.5 per cent over that last three sessions yesterday, trading at $49.20 a barrel. The commodity's price had been at a six year low of $38.24 as recently as 24 August.

Meanwhile, global benchmark Brent crude was trading at around $53 a barrel, having dipped to below $45 in recent weeks.

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