Oil prices registered an increase for a third consecutive day, as speculators traded on expectations of increased demand after signs emerged of an improving US economy. WTI crude future for June delivery rose by 0.47 percent to USD $ 111.97 a barrel, while Brent future increased by 0.42 percent to close at USD $ 124.37 a barrel.
The earnings from the technology sector exceeded the previous forecasts of them, which was proven with Apple Inc.’s profit being greater than the anticipated profit for the quarter. This boosted the idea that demand in the market was healthy, in spite of the high level of oil prices. Furthermore, reports released by the Energy Information Agency (EIA) stated that US Crude oil supplies fell by 2.32 million barrels to 357 million barrels last week. Both of these factors contributed to the increase in the oil price.
The Dollar Index dropped for a third consecutive day by 0.4 percent to 74.11 percent, while the unrest in Libya continued unabated. Riots also broke out in Nigeria, which is Africa’s largest oil producing country, after the opposition candidate, Muhammadu Buhari lost the recently held presidential elections. All of these factors maintained the volatility in the market which has been prevalent for the past few months.