By Karolin Schaps and Ron Bousso, Reuters, May 26, 2016
NEW YORK — Oil prices hit US$50 a barrel on Thursday for the first time in seven months, then bounced below that level and settled lower on the day as investors worried robust price gains could encourage more output and add to the global glut.
Wildfires in Canada’s oilsands, unrest in the Nigerian and Libyan energy sectors, and a near economic meltdown in OPEC member Venezuela have knocked out nearly four million barrels per day in immediate production, sparking a buying frenzy in crude futures.
Brent and U.S. crude’s West Texas Intermediate (WTI) futures have risen nearly 90 per cent from 12-year lows hit this winter. They have recouped about half of what they lost since mid-2014 when both traded at above US$100 a barrel.
