Oil at highest since 2015 on inventory drawdown, Iran unrest

Ivan Schwartz
January 7, 2018

US oil stocks fell more than expected, continuing a steady drawdown of supplies in the world's largest oil consumer, though stocks of distillates and gasoline rose on heavy refining activity driven in part by year-end adjustments.

Brent crude LCOc1, the global benchmark, rose 5 cents to $67.92 a barrel as of 1:53 a.m. EST (1853 GMT) after hitting a high of $68.27 earlier in the session.

U.S. West Texas Intermediate (WTI) crude futures hit $60.32, the highest since June 2015.

Oil prices dipped from heights last seen in 2015 yesterday as a leap in American production undermined a 10 per cent rally driven by supply disruptions and political tension in Iran.

Brent crude, the worldwide benchmark, on Friday settled up 23 cents at $68.07 a barrel after hitting a high of $68.27 earlier in the session.

Tifton native ready for Georgia-Alabama championship game
The Georgia-Alabama championship football game is just two nights away and fans across Southwest Georgia are of course gearing up. He recounted the time in 2013 he painted his chest red and watched from the student section as the Bulldogs played LSU.

Abducted Texas girls found safe in Colorado; Suspect in custody
Banks said Miles' vehicle started to drive erratically and a law enforcement official waited for backup before engaging the auto . Investigators said Miles may have taken the girls across state lines and an AMBER Alert was issued in Colorado on Wednesday.

Injured Dale Steyn ruled out of 1st Test, likely to miss series
Steyn took his career total to 419 Test wickets overnight, three behind the South African record of 422 held by Shaun Pollock. Steyn pulled up three balls into his 18th over after taking two for 51 in the first Test against India at Newlands.

Freezing weather in the United States has boosted demand for heating oil.

Beyond a brief intraday spike in May, 2015, these were the highest crude price levels since December, 2014, at the start of the oil price downturn. Domestic demand was also higher: USA product supplied for crude oil and petroleum products was at the highest level since 2007. USA commercial crude inventories C-STK-T-EIA fell by 7.4 million barrels in the week to December 29, to 424.46 million barrels, according to data from the Energy Information Administration (EIA).

Despite relatively high US crude oil production, curtailments in production by members of the Organization of the Petroleum Exporting Countries (OPEC) and robust global demand supported crude oil price increases in 2017, EIA said.

The Organisation of the Petroleum Exporting Countries is reducing output by about 1.2 million barrels per day (bpd) as part of a deal with Russian Federation and other non-Opec producers. While Saudi Arabia and Iran cut their production in December by 20,000 bpd each, Libya's fell for reasons outside the control of the National Oil Corporation: a pipeline blast temporarily took off between 70,000 and 100,000 bpd off daily production.

Analysts expect US production to top 10 million bpd in the next few weeks and to keep growing, limiting efforts by other producers to cap global supplies.

Other reports by GizPress

Discuss This Article