Oil pares back gains as it records strongest March rally since 2007

Billy Bambrough
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High Oil Prices Continue To Drive Gas Prices Steadily Upwards
The first quarter oil rally now hinges on the upcoming Opec meeting with Russia in Doha on 17 April (Source: Getty)

The oil price was traded flat yesterday, though still managed to record its strongest March rally in almost a decade.

International benchmark Brent crude climbed back above $40 per barrel and was going for $40.11 in evening trading. US benchmark West Texas Intermediate gained around half a dollar throughout the day, settling around $38.25.

The euro reached its highest level against the dollar since October, making dollar-denominated oil more affordable to holders of other currencies.

Oil prices have risen about 50 per cent since hitting lows of $27 per barrel in January due to trader hopes that Saudi Arabia led Opec will be able to close a deal with Russia to freeze production at January levels.

US shale production has also begun to drop off with inventories adding less than expected on Wednesday, hitting a record 534.8m.

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