Crude oil for July delivery has rebounded strongly at the New York Mercantile Exchange in the past 24 hours, more than reversing a fall in the first part of Tuesday after the Saudi oil minister said Opec was unlikely to cut production at its meeting tomorrow (Thursday May 28).
The front month Light Sweet Crude contract had fallen from around $61.50 to below $60 after Ali al-Naimi’s comments were reported by the Arab daily newspaper Al-Hayat on Tuesday 26 May.
But traders soon took the view that demand held the upper hand in the market, even without the prospect of a supply cut. By 2.30pm London time on Wednesday, the Nymex price was up at $63.
“I think for the most...