US crude oil surges 7%, has highest settlement of 2015

(Reuters on CNBC) – Oil rallied for a third straight day on Tuesday as bulls convinced the market had hit bottom after a seven-month rout pounced on a weak dollar and cuts in oil firms’ spending plans despite signs crude stocks were rising without let up. U.S. crude closed up $3.48, or 7 percent, at $53.05 per barrel, marking its highest settlement this year. WTI crude rose as much as 9.4 percent earlier to a session high of $54.24. Benchmark Brent crude oil was last up $3 at $58 a barrel. US. crude prices have gained about 20 percent since the market was jolted by news on Friday that the number of U.S. oil drilling rigs had fallen their most in a week in nearly 30 years after the 60 percent selloff that began last summer. The dollar dropped to a more than one-week low against a basket of currencies on Tuesday, making dollar-priced commodities a more attractive buy. BP‘s announcement that it would cut capital expenditure by 13 percent to $20 billion in 2015, adding to reductions planned by other major energy companies, also fueled the perception that the global glut in oil supply may be overcome faster than … continue reading

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