TOKYO - US crude futures were little changed above US$56 (S$73) a barrel on Thursday following volatile trading the previous day due to bearish US oil data, Russia's rouble crisis and a US decision to resume diplomatic ties with Cuba after 50 years.
FUNDAMENTALS
- NYMEX crude for January delivery, which expires after Friday's settlement, was up 1 cent at US$56.48 a barrel by 0006 GMT. It settled up US$0.54 on Wednesday, after weeks of losses, supported by the Federal Reserve's upbeat assessment of the economy.
- The benchmark contract rose as high as US$58.98 on Wednesday after weekly US government oil data showed a big build in crude stockpiles at Cushing, triggering speculators to buy up contracts or take profits on short positions.
- London Brent crude for February delivery was untraded yet, after settling up US$1.17 at US$61.18.
- The biggest slide in oil prices since the 2008 financial crisis had accelerated after OPEC met in November, when Gulf producers resisted calls to curb output.
- More companies are being forced to cut down upstream investments around the world as oil prices fall.
- Chevron Corp has put a plan to drill for oil in the Beaufort Sea in Canada's Arctic on hold indefinitely, while Marathon Oil cut its capital expenditures by about 20 per cent next year.
MARKETS NEWS
- The S&P 500 scored its best day since October 2013 on Wednesday.
- The US dollar posted its biggest daily gain against major currencies since early October on Wednesday after the Federal Reserve signalled it was on track to hike interest rates sometime next year.