Oil rose a fifth straight session in Wall Street, making it the longest winning streak since last April, as the supply glut eases.
The Energy Information Administration (EIA) says crude inventories dropped by 2.51 million barrels in the week ending Aug. 12, Bloomberg reports.
OPEC announced plans to host a series of informal talks regarding necessary action to stabilize the market—possibly cutting output in hopes that refinery demand will pick up. These sentiments were good news for oil bulls, encouraging money managers to increase bets that the market will bounce back and crude oil prices will soon rise.
The Fed’s indecisiveness regarding a rate hike in its last meeting also contributed to the oil rally, as investors’ appetite for commodities greatly increases on a weaker dollar. [Bloomberg]
