Oil is holding at its highest level in one and a half years

The price of oil is holding close to highs not seen in as long as 18 months on Friday as balance starts to slowly but surely return to the market after being blighted by a huge supply and demand imbalance for more than two years. Prices for both major benchmarks are broadly unchanged in trade on Friday, but have gained a little despite a second consecutive week of crude oil inventory builds, with a U.S. Energy Information Administration (EIA) report on Thursday night showing an unexpected rise in crude stocks. West Texas Intermediate crude, the US benchmark, is trading just below $54 per barrel, up less than 0.4% on the day, as of 8.40 a.m. GMT (3.40 a.m. ET). 

Here's the chart (note the black line showing that oil hasn't been this high since July 2015).

Brent crude, the international benchmark, is also hovering close to 18-month highs, climbing above $57 per barrel for the first time since July last year.

Oil prices have gained substantially in recent weeks following the oil producer's cartel OPEC finally agreeing to cut production at a meeting in late November. The cut will be OPEC's first since 2008, and brings to an end a period where member nations have pumped as much oil as they wish. 

The move is designed to end the huge glut of the world's most important commodity that has helped drive prices down from more than $100 per barrel in mid-2014

According to a poll undertaken by Reuters on Thursday, oil prices will gradually rise toward $60 per barrel by the end of 2017, with further upside capped by a strong dollar, a likely recovery in U.S. oil output and possible non-compliance by OPEC with agreed cuts.

1585 views


More World news

Donald Trump and Syria

Donald Trump and Syria

Immediately after taking office, the 45th US president will have to determine his position on the Syrian issue

 Stoltenberg: Trump to keep US wedded to NATO

Stoltenberg: Trump to keep US wedded to NATO

NATO Secretary General Jens Stoltenberg said he’s “absolutely confident” the US will stay committed to NATO despite Donald Trump calling the alliance obsolete. “Two world wars …

Eight people found alive after avalanche hit Italian hotel

Eight people found alive after avalanche hit Italian hotel

Eight people, including two children, have been found alive in a ski resort hotel in central Italy that was flattened by a powerful avalanche on Wednesday. Five survivors, including one young girl and a woman thought to be her mother, …

Vyacheslav Matuzov: Those who bet on military solution to Syrian conflict will not come to Astana

Vyacheslav Matuzov: "Those who bet on military solution to Syrian conflict will not come to Astana"

Russian orientalist believes that the split is the main danger to the Islamic Arab world

Moscow commemorates victims of #039Black January#039

Moscow commemorates victims of 'Black January'

Today, the Azerbaijani Embassy in Moscow held a mourning event dedicated to the memory of victims of the tragedy of January 20, 1990 in Baku. Ambassador of the Republic of Azerbaijan in Russia, Polad Bulbuloglu, addressing …

Protesters and supporters of Trump clash in Washington

Protesters and supporters of Trump clash in Washington

Protesters and supporters of US President-elect Donald Trump clashed outside a pro-Trump event in Washington the night before his inauguration. Police used chemical spray on some protesters in an effort to control the unruly …

Turkey expects Trump administration to extradite Gulen

Turkey expects Trump administration to extradite Gulen

Turkey is confident that its relations with the United States will improve significantly under President-elect Donald Trump and expects extradition of Fethullah Gulen, Turkish Foreign Minister Mevlut …

George Soros: Donald Trump is #039would-be dictator#039

George Soros: Donald Trump is 'would-be dictator'

Donald Trump is a “would-be dictator” who is “going to fail”, the billionaire investor George Soros has told the Davos world economic forum. On the eve of Trump’s inauguration as president, …

ISIS destroy Palmyra#039s Roman hitheatre

ISIS destroy Palmyra's Roman amphitheatre

ISIS have destroyed part of the Roman amphitheatre in the ancient city of Palmyra, Syrian officials have confirmed. Syria’s antiquities chief, Maamoun Abdulkarim, said ISIS had demolished the Tetrapylon and …

Merkel to visit Turkey next month

Merkel to visit Turkey next month

German Chancellor Angela Merkel is expected to visit Turkey in early February to meet with the Turkish Prime Minister Binali Yıldırım and the President Recep Tayyip Erdoğan, Daily Sabah …

more World news