Crude oil futures settled up $0.16 at $71 a barrel

The price of the WTI crude oil futures are settling up $0.16 and $71 a barrel. The high price today reached $71.41. The low price was at $70.40.

Oil prices rebounded above $70.00, a level that has largely held sway over the past month, driven by tight supply and short covering by institutional investors. While weak demand from China and slowing Western economies have capped the commodity’s gains, Wednesday’s 50-basis-point rate cut by the US Federal Reserve has sparked hopes of a revitalized US economy, potentially boosting oil demand from the world’s largest consumer.

Today, Baker Hughes oil rig count was unchanged at 488

This article was written by Greg Michalowski at www.forexlive.com.