Brent Holds Above $59, up more than 2 Percent on Week
BEIJING – Benchmark Brent crude held above $59 on Friday, up more than 2 percent this week as news of deeper industry spending cuts and a sinking U.S. dollar revived buying.
Brent crude for April delivery was trading down 17 cents at $59.11 at 0232 GMT.
March Brent futures, which expired on Thursday, rose more than 4 percent to $57.05, following a 3-percent loss in the previous day’s session.
U.S. crude futures were down 13 cents at $51.08, following similar swings.
Oil volatility has reached its highest level since the financial crisis, jolting traders who had been adjusting to a period of predictable declines following a near 60-percent crude crash between June and January.
The discount for West Texas Intermediate (WTI) versus Brent crude also expanded to around $7.17 a barrel intraday, the widest in five months, as U.S. oil tanks swelled.
French energy major Total on Thursday became the latest to announce investment and job cuts following a near-halving of oil prices since June.
The chief executive of Shell warned that supply might not be able to keep up with growing demand as companies slash budgets.