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MTECHTIPS:-Crude oil futures push higher as market sentiment improves

MTECHTIPS:-Crude oil futures push higher as market sentiment improves

Crude oil futures rose for the second straight session on Thursday, as appetite for growth-linked assets improved after the People’s Bank of China reassured markets that it will not continuously devalue the yuan. The central bank said in a closely-watched press conference earlier that there was no basis for further depreciation in the yuan, easing concerns over a full blown currency war that could destabilize the global economy. China’s yuan opened slightly weaker on Thursday, but losses were limited as policymakers stepped up intervention in the market in a bid to stabilize prices. On the ICE Futures Exchange in London, Brent oil for October delivery inched up 40 cents, or 0.8%, to trade at $50.58 a barrel during European morning hours. A day earlier, London-traded Brent prices rose 47 cents, or 0.95%, to end at $50.18 after the International Energy Agency said global oil demand growth in 2015 would be the strongest in five years. However, the agency warned that a global oil glut will last through next year. Brent tumbled to $48.24 on Monday, the weakest level since March 2009, amid concerns over a global supply glut. Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production. Elsewhere, crude oil for delivery in September on the New York Mercantile Exchange tacked on 20 cents, or 0.45%, to trade at $43.50 a barrel. On Wednesday, Nymex oil added 22 cents, or 0.51%, to close at $43.30 after the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 1.7 million barrels in the week ended August 7.
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