GS:Oil rises to near $86 after plunging nearly 7 per cent in past week
BANGKOK - The price of oil was driven higher by bargain-hunting traders Thursday after plunging about 7 per cent in the past week.
Benchmark crude for December delivery was up 24 cents to US$85.97 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange.
Oil fell Wednesday after the U.S. reported an unexpectedly large increase in crude supplies. The contract dropped 94 cents, or about 1 per cent, to finish at $85.73 per barrel.
Mark Pervan, senior commodity strategist with ANZ Bank in Melbourne, said traders were seeing an opportunity for bargains after recent price plunges. The oil price has dropped almost 7 per cent since closing last Thursday at $92.10.
"The markets have been heavily sold in the last couple of weeks," he said. "Oil looks like one of the cheaper commodities in the markets."
U.S. oil supplies grew last week by 5.9 million barrels, or 1.6 per cent, the Energy Department said. At 375.1 million barrels, the nation's oil inventory is 11.1 per cent above year-ago levels.
Brent crude rose 32 cents to $108.17 per barrel in London.
Read it on Global News: Global Saskatoon | Oil rises to near $86 after plunging nearly 7 per cent in past week
