Oil extends gains as risk appetite improves, US inventories fall
Oil gained more than $1 a barrel on Thursday, extending gains from the previous session, buoyed by improved risk appetite among investors while lower crude inventories and a rebound in gasoline demand in the United States supported prices.
Brent crude futures for September rose $1.20, or 1.1%, to $107.82 a barrel by 0158 GMT, after gaining $2.22 on Wednesday.
US West Texas Intermediate crude (WTI) was at $98.70 a barrel, up $1.44, or 1.5%, after rising $2.28 in the previous session.
“Risk sentiment has recovered from recession fears due to the ongoing U.S. earnings optimism and a less aggressive Fed’s rhetoric on rate hikes, which supported a rally in the crude market,” CMC Markets analyst Tina Teng said, adding that a weakened U.S. dollar has also lifted commodities prices.
