U.S. Crude Reserves Fall, Oil Hits 2016 Highs

Oil has recorded near 10-Month high as U.S. crude stockpiles decline, U.S. oil inventories fell 3.23 million barrels last week. It was also affected by disruptions in producing countries like Canada and Nigeria.

Futures were stable in New York, it just recorded an earlier increase of 0.9%, after settling on Wednesday at the highest since July 15. Crude stockpiles dropped by 3.23 million barrels last week to the lowest in two months, the U.S. Energy Information Administration said on Wednesday. A new wildfire prompted Canadian oil producers Cenovus Energy Inc. and Canadian Natural Resources Ltd. to shut production.

Crude has surged more than 95% from a 12-year low in February amid unexpected disruptions and a steady slide in U.S. output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of pumping without limits. Militant attacks have hobbled production in OPEC member Nigeria.

West Texas Intermediate for July delivery traded 12 cents lower at $51.11 a barrel on the New York Mercantile Exchange as of 9:23 a.m. London time, having risen as much 44 cents to $51.67. Total volume traded was about 20 percent below the 100-day average. The contract rose 87 cents, or 1.7 percent, to close at $51.23 on Wednesday, the highest since July 15.

International Brent crude oil futures hit a high of $52.86 a barrel, and were up 23 cents at $52.74 a barrel at 0700 GMT. U.S. crude hit a fresh high of $51.67 and was up 33 cents higher at $51.56 a barrel.

Oil company Stocks Rally Put an End to 5-day losing streak

The prices of the crude were up that pulled the stock market out of a 5 day slump. Oil prices were up yesterday as a result of the International Energy Agency statement that drillers will be cutting production this year.

The S&P 500 index increase by 26.75 points or 1.3% that ended at 2,019.42. The Dow Jones industrial average increase by 190.86 points or 1.1% to close at 17,511.57, and the Nasdaq rose 63.56 points or 1.4% to 4,634.38.

Anastasia Amoroso, a global market strategist at JP Morgan Asset Management said that “There has been a lot of conflicting information to digest, recently”, “Are low oil prices a good or a bad thing?” “For stocks, deflation is not so great.”

Benchmark US crude were up yesterday by $2.44 to close at $48.69 a barrel in New York trading. Brent crude, a benchmark for international oil used by many US refineries, added 31 cents to $50.17 in London.

UK markets Lost more than £30 billion, Euro dips to 9-yr low, Brent crude oil drops below $50

The world economy is in chaos as the value of UK firms plunge losing more than £30 billion on Monday as world markets felt the effects of Greece potentially leaving the euro currency.

London’s FTSE 100 index lost 130.64 points closing at 6417.16, wiping out around £33.2 billion from the UK’s leading blue chip firms.

The euro has fallen to a 9-year low since the beginning of 2015, as recessions continue to hit the weakest countries in Europe, which includes France, Portugal and Spain. The euro is now worth around $1.186 US dollars. The collapsing oil prices didn't help as investors put their money in safe-haven sovereign debt. Brent crude drops below the $50 barrier, losing more than a dollar to $49.92 a barrel just before 3. a.m. ET, it has reached the levels last seen in May 2009, although prices went back above $50 later.

U.S. futures CLc1 lost 75 cents to under $47.20 a barrel, their lowest since April 2009, after already completing the drop below $50 earlier in the week.