Prices for Brent soared to $71 a barrel today, the first case since 2014, as the U.S. dollar kept falling and US crude inventories dropped for the second month in a row, while OPEC and other producers go on with their oil production cuts.
Brent futures, the global standard for prices of oil, reached $71.05 for a barrel in the course of the session, it is the record since December 2014, though it slipped to $70.86 afterwards, but anyway it was 0.5% uptick from the last settlement.
U.S. WTI futures jumped to $66.35 for a barrel, a record as well since December 2014, to later go down to $66.14, which was also higher by 0.8% compared to the last settlement.
Both Brent and WTI have grown by nearly 60% in the past 6 months. Output limitations, U.S. dollar slump, together with yet more inventory drawdown send oil up, said Greg McKenna of AxiTrader.
Bigger prices of oil will surely result in hiked consumer prices because the transportation expenditures for goods will grow, William O‘Loughlin of Rivkin Securities points out. Meantime, U.S. oil is threatening the market’s upward trend, as it gradually nears the mark of 10 mln barrels daily, attaining 9.88 mln in the past week.