Oil Set for 4th Weekly Gain as U.S. Glut Eases on Winter Decline
Friday, 12 January 2018 07:35 WIB |
Oil headed for a fourth weekly gain as the longest run of winter declines for U.S. crude stockpiles in a decade eased an inventory overhang.
Futures in New York were trading near the highest close in more than three years and are up 3.4 percent this week. U.S. crude supplies capped an eighth straight drop last week as inventories edge toward the five-year average, according to government data Wednesday. Brent oil in London climbed above $70 a barrel Thursday for the first time since December 2014.
Oil has continued to rally this year after posting a second annual advance as the Organization of Petroleum Exporting Countries and its allies curb supply to drain a worldwide glut. While the global market is balancing, there is still more than 100 million barrels that need to be cleared, according to United Arab Emirates Energy Minister Suhail Al Mazrouei.
West Texas Intermediate for February delivery was at $63.52 a barrel on the New York Mercantile Exchange, down 28 cents, at 8:05 a.m. in Hong Kong. Total volume traded was about 26 percent below the 100-day average. Prices gained 23 cents to $63.80 on Thursday, the highest close since December 2014.
Brent for March settlement added 6 cents to $69.26 a barrel on the London-based ICE Futures Europe exchange on Thursday, the highest close in three years. Prices are up 2.4 percent this week. The global benchmark crude ended the session at a premium of $5.58 to March WTI.
Source : Bloomberg