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US Crude Soars Above $63 as Oil Supplies, Output Decline

Summary:
Oil futures are trading higher midweek as US crude supplies and production declined. Oil prices are settling at their best levels unseen since December 2014, and they may be poised for a 2018 breakout. February West Texas Intermediate (WTI) crude futures rose %excerpt%.37, or 0.59%, to .33 per barrel at 16:31 GMT on Wednesday on the New York Mercantile Exchange. US crude is on track for its best finish since December 2014. Brent, the international benchmark for oil prices, is also poised for its highest close in more than three years. March Brent crude futures advanced %excerpt%.16, or 0.23%, to .98 a barrel on London’s ICE Futures exchange. According to the US Energy Information Administration (EIA), domestic crude stockpiles decreased by 4.9 million barrels for the week ending January 5, while

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Oil futures are trading higher midweek as US crude supplies and production declined. Oil prices are settling at their best levels unseen since December 2014, and they may be poised for a 2018 breakout.

February West Texas Intermediate (WTI) crude futures rose $0.37, or 0.59%, to $63.33 per barrel at 16:31 GMT on Wednesday on the New York Mercantile Exchange. US crude is on track for its best finish since December 2014.

Brent, the international benchmark for oil prices, is also poised for its highest close in more than three years. March Brent crude futures advanced $0.16, or 0.23%, to $68.98 a barrel on London’s ICE Futures exchange.

According to the US Energy Information Administration (EIA), domestic crude stockpiles decreased by 4.9 million barrels for the week ending January 5, while US crude out output slipped by 290,000 barrels to 9.492 million barrels per day (bpd). Gasoline supplies jumped 4.1 million barrels, while distillate stockpiles surged 4.3 million barrels.

The EIA also published its monthly outlook report on Tuesday, which projected 2018 WTI and Brent futures to trade at $55.33 and $59.74, respectively.

Investors were surprised by the slide in domestic production, but they were more disappointed by the size of the slip in US crude supplies. These trends prompted oil prices to retreat from session highs. Despite the drop in the number of US oil-drilling rigs, analysts say there is nothing to worry about because the technicals do not show anything serious.

Since the beginning of 2018, the anti-government demonstrations in Iran have assisted in boosting oil futures. Although the political unrest has yet to impact the nation’s oil capabilities, it could be a powder keg waiting to explode in Tehran, especially with 21 dead and thousands detained.

Meanwhile, February natural gas futures dipped 0.70% to $2.903 per million British thermal units, and February gasoline futures tumbled 0.6% to $1.82 per gallon.

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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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