Brent oil price hits highest level since 2014

Randall Padilla
April 11, 2018

Oil markets stabilized on Monday after having lost around 2 percent last Friday as concerns grew over the impact on global growth from an intensifying trade dispute between the United States and China, as well as increased US drilling activity.

New York-traded West Texas Intermediate crude futures jumped $1.56, or about 2.5 per cent, to $65.02 a barrel while Brent crude futures, the benchmark for oil prices outside the US, rose $1.66, or roughly 2.4 per cent, to $70.31 a barrel.

"Oil prices have been susceptible to the brewing trade tensions between China and the US ..."

The president met with military officials in the White House Monday to discuss the administration's response to an alleged chemical weapons attack carried out by Syrian President Bashar Assad 's government against its own people.

West Texas Intermediate crude futures CLc1 gained 3.3 percent, or $2.09, to settle at $65.51 a barrel.

The report comes a week after Crown Prince Mohammed first told Time magazine that he expected Aramco's public launch to coincide with higher oil prices.

"Oil prices rose sharply (on Monday) as a weaker United States dollar and easing concerns about the trade war saw investor appetite return", ANZ bank said. "Usually, what the Saudis want, the Saudis get", said Flynn.

In other energy news Tuesday, the U.S. Energy Information Administration raised its 2018 and 2019 price forecasts for WTI and Brent crude.

The oil market got another boost later on in the day after data from the United States government said domestic production would be slightly lower in 2018 than previously - but not by much.

And "Russia with sanctions in place will also need to comply as they cant afford to risk a break in the price of oil", he said. It also forecast average retail gasoline prices of $2.74 a gallon for the summer driving season, up from $2.41 for the summer of 2017.

U.S. WTI crude futures were at $62.31 a barrel at 0643 GMT, up 25 cents, or 0.4 percent, from their previous settlement.

Industry group the American Petroleum Institute is due to release its weekly report yesterday.

Oil markets have been supported by healthy demand and supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

That will likely make the United States the world's biggest oil producer by 2019, surpassing Russian Federation which now pumps out nearly 11 million bpd.

May natural gas ended at $2.656 per million British thermal units, down 1.4%.

Other reports by AllAboutTopnews

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