WTI Oil Climbs Above $50 on Thursday for First Time Since July

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Crude oil futures hit the key mark of $50 a barrel on Thursday before retreating lower as traders remained cautious due to global output concerns and excessive storage supplies, according to Bloomberg MarketWatch.

For the first time since last July, West Texas Intermediate crude under the new July contract advanced to $50.21 a barrel before finishing lower, dropping 8 cents, or 0.2%, to end trading at $49.48 a barrel on the New York Mercantile Exchange. WTI futures have grown more than 30% since falling to a low $27 a barrel in February.

July Brent crude also surged to $50.51 a barrel earlier on Thursday before settling at $49.59 a barrel on London’s ICE Futures Exchange. The settlement marks a decrease of 15 cents, or 0.3%. November was the last time Brent crude rose above the $50 mark.

“It’s quite a big deal to see Brent and WTI trading back up at $50,” said Colin Cieszynski, chief market strategist at CMC Markets. “It shows just how far the market has come back in recent months, nearly doubling off their lows.”

“We believe the market has returned to balance in May, with the fundamental correction accelerated by supply disruptions,” said Jason Gammel, oil analyst at Jefferies. “For the first time in two years we expect that there is more upside than downside in our flat oil price forecasts.”

Thursday also marked the expiration of the June natural gas futures contracts. June natural gas declined by 2.9 cents, or 1.5%, settling at $1.963 per million British thermal units. July natural gas, now the front month contract, dropped 3 cents, or 1.4%, to end trade at $2.151 per million British thermal units.