London - Crude oil prices gained on Thursday, bouncing from a two-month low set the previous session as a Spanish bond auction attracted strong investor demand, alleviating some concerns about the health of the eurozone economy.
Spain’s Treasury issued €2.5bn in two- and 10-year bonds on Thursday at the top end of the targeted amount, although yields ticked higher than at the previous January auction.
Brent June crude gained 43 cents to $118.40 a barrel after hitting $116.70 in the previous session, its lowest in more than two months.
US May crude gained 18c to $102.85, after falling more than a dollar in the previous session. The May contract expires on Friday.
Some investors saw recent sharp falls as a good buying opportunity.
“Maybe this has marked the bottom of the market for oil,” said Christopher Bellew at Jefferies Bache.
“There are plenty of potential catalysts that could push up the oil price - the effect of Iranian oil sanctions, good economic data from the United States would see funds pushing back into oil.”
Revived fears about the eurozone’s shaky finances have contributed to a 3.2% fall in the price of Brent this month, raising once again the prospects of economic decline and falling energy demand.
To help cushion the impact of a potential European debt crisis, the International Monetary Fund (IMF) said on Wednesday it had raised $320bn so far, with Poland and Switzerland joining the effort. The IMF is hoping to secure at least $400bn.
Eyes are also on next week’s meeting of the policy-setting US Federal Open Market Committee (FOMC), which will be closely scrutinised for any hints of a third round of quantitative easing, which could have an impact on oil prices.
US stocks
US crude stocks jumped 3.86 million barrels to nearly 22.8 million in the week to April 13, the biggest four-week build since February 2009, US Energy Information Administration (EIA) data showed.
The increase exceeded analyst expectations for a rise of 1.4 million barrels.
The build helped offset supply concerns due to a string of disruptions across the globe this year as well as worries about the potential loss of oil from Iran due to EU and US sanctions against the Opec producer, set to take effect in July.
Appetite for other crude grades could increase, with Japan slashing Iranian crude purchases by almost 80% in April versus the first two months of the year as tightening sanctions make it tough to pay, ship and insure Iranian oil.
Iran and six world powers have decided to reconvene on May 23 in Baghdad after talks on Iran’s disputed nuclear programme resumed last Saturday, following a long gap.
Iran has said it is ready to resolve issues raised by the West.
Spain’s Treasury issued €2.5bn in two- and 10-year bonds on Thursday at the top end of the targeted amount, although yields ticked higher than at the previous January auction.
Brent June crude gained 43 cents to $118.40 a barrel after hitting $116.70 in the previous session, its lowest in more than two months.
US May crude gained 18c to $102.85, after falling more than a dollar in the previous session. The May contract expires on Friday.
Some investors saw recent sharp falls as a good buying opportunity.
“Maybe this has marked the bottom of the market for oil,” said Christopher Bellew at Jefferies Bache.
“There are plenty of potential catalysts that could push up the oil price - the effect of Iranian oil sanctions, good economic data from the United States would see funds pushing back into oil.”
Revived fears about the eurozone’s shaky finances have contributed to a 3.2% fall in the price of Brent this month, raising once again the prospects of economic decline and falling energy demand.
To help cushion the impact of a potential European debt crisis, the International Monetary Fund (IMF) said on Wednesday it had raised $320bn so far, with Poland and Switzerland joining the effort. The IMF is hoping to secure at least $400bn.
Eyes are also on next week’s meeting of the policy-setting US Federal Open Market Committee (FOMC), which will be closely scrutinised for any hints of a third round of quantitative easing, which could have an impact on oil prices.
US stocks
US crude stocks jumped 3.86 million barrels to nearly 22.8 million in the week to April 13, the biggest four-week build since February 2009, US Energy Information Administration (EIA) data showed.
The increase exceeded analyst expectations for a rise of 1.4 million barrels.
The build helped offset supply concerns due to a string of disruptions across the globe this year as well as worries about the potential loss of oil from Iran due to EU and US sanctions against the Opec producer, set to take effect in July.
Appetite for other crude grades could increase, with Japan slashing Iranian crude purchases by almost 80% in April versus the first two months of the year as tightening sanctions make it tough to pay, ship and insure Iranian oil.
Iran and six world powers have decided to reconvene on May 23 in Baghdad after talks on Iran’s disputed nuclear programme resumed last Saturday, following a long gap.
Iran has said it is ready to resolve issues raised by the West.