Benchmark crude for May delivery added US$0.35 to settle at US$50.33 a barrel on the New York Mercantile Exchange on Friday.
With the May contract ending next week, traders focused on crude stocks with a later delivery under the June contract.
Crude for June delivery increased US$0.31 to settle at US$52.47 a barrel.
In London, Brent prices gained US$0.29 to settle at US$53.35 a barrel on the ICE Futures exchange.
“There’s still a lot of money out there that has to go somewhere,” said Michael Lynch, president of Strategic Energy Economic Research.
“They see it as a good buy long-term,” Lynch said.
Investors see oil stocks as the ultimate safe haven, a commodity that will almost certainly be in greater demand next year. That is what has kept prices aloft this week despite daily reports showing the world economy is running on less oil, not more.
The government said this week that US storage facilities were bloated with the biggest surplus in nearly 19 years.
If that wasn’t enough, the US government, OPEC and the International Energy Agency all revised their demand forecasts, saying the world would consume even less petroleum this year than expected.
A few months ago, such news probably would have pushed crude prices to new lows.
But traders said they have already factored in the tepid global economy and have moved on. They are guided now by rising equities markets and a general hope that better times are ahead.
“Crude’s really moving in sympathy with the stock market right now,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.
Analyst Phil Flynn also noted reports that China is pumping money into raw materials like oil to shield itself from depending too heavily on the US dollar.
He said in a research note that the move by China has persuaded other investors to snap up oil stocks as well.
“There is growing evidence that China will look to store oil and other commodities as opposed to US treasuries,” Flynn said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source