Oil Stock Markets
Brent oil prices hit $71 per barrel on Thursday for the first time since
2014 as the dollar continued to weaken and crude inventories in the
United States fell for a 10th straight week amid ongoing supply cutbacks
by OPEC and top producer Russia.
Brent crude futures LCOc1, the international benchmark for oil prices, hit a session high of $71.05 per barrel - the highest since early December 2014 - before dipping back to $70.99 by 0440 GMT. That was still up 46 cents, or 0.7 percent from the last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 climbed to $66.35 per barrel, also the highest level since early December 2014, before dipping to $66.26. That was still up 1 percent from the last settlement.
Both crude benchmarks have risen by almost 60 percent since the middle of last year.
Price have been supported by supply restrictions led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, the world’s biggest oil producer, which started last year and are set to last throughout 2018.
U.S. crude inventories C-STK-T-EIA fell 1.1 million barrels in the week to Jan. 19, to 411.58 million barrels, the Energy Information Administration (EIA) said on Wednesday.
That is the lowest seasonal level since 2015 and below the five-year average of about 420 million barrels.
In foreign exchange markets, the U.S. dollar hit its lowest level since December 2014 against a basket of other leading currencies .DXY.
A weakening dollar often results in financial traders taking investments out of currency markets and into commodity futures like crude.
Analysts said that rising oil prices would likely start to have an inflationary effect.
Looming over the generally bullish oil market has been U.S. oil production, which is edging ever more closely towards 10 million barrels per day (bpd), rising to 9.88 million bpd last week.
U.S. output has grown by more than 17 percent since mid-2016, and is now on par with that of top exporter Saudi Arabia.
Only Russia produces more, averaging 10.98 million bpd in 2017.
Brent crude futures LCOc1, the international benchmark for oil prices, hit a session high of $71.05 per barrel - the highest since early December 2014 - before dipping back to $70.99 by 0440 GMT. That was still up 46 cents, or 0.7 percent from the last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 climbed to $66.35 per barrel, also the highest level since early December 2014, before dipping to $66.26. That was still up 1 percent from the last settlement.
Both crude benchmarks have risen by almost 60 percent since the middle of last year.
Price have been supported by supply restrictions led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, the world’s biggest oil producer, which started last year and are set to last throughout 2018.
U.S. crude inventories C-STK-T-EIA fell 1.1 million barrels in the week to Jan. 19, to 411.58 million barrels, the Energy Information Administration (EIA) said on Wednesday.
That is the lowest seasonal level since 2015 and below the five-year average of about 420 million barrels.
In foreign exchange markets, the U.S. dollar hit its lowest level since December 2014 against a basket of other leading currencies .DXY.
A weakening dollar often results in financial traders taking investments out of currency markets and into commodity futures like crude.
Analysts said that rising oil prices would likely start to have an inflationary effect.
Looming over the generally bullish oil market has been U.S. oil production, which is edging ever more closely towards 10 million barrels per day (bpd), rising to 9.88 million bpd last week.
U.S. output has grown by more than 17 percent since mid-2016, and is now on par with that of top exporter Saudi Arabia.
Only Russia produces more, averaging 10.98 million bpd in 2017.
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