Brent crude and WTI: US oil hits fresh 2016 high on softer dollar, supply outages

Jessica Morris
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Crude also received support from falling Nigerian output (Source: Getty)

Oil prices raced to a fresh 2016 high today, energised by expected falls in crude stockpiles and supply outages.

Brent crude, the global benchmark, swelled 1.2 per cent to $51.17 per barrel this afternoon, after hitting an intra-day peak of $51.30 earlier, its highest since October.

West Texas Intermediate crude, the US benchmark, jumped 0.8 per cent to $50.10. It touched a fresh 2016 peak of $50.37 earlier.

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Brent crude, the global benchmark, swelled 1.2 per cent to $51.10, after rising to $51.30, the highest since October.

A Reuters poll showed US oil stockpiles likely shrank by 3.5m barrels last week, marking a third consecutive week of declines. It comes before the release of official stockpiles data from the US government tomorrow.

Crude was also supported by falling Nigerian output following a state of attacks on oil infrastructure there.

Commodities are generally being lifted by the US dollar which sank Friday after a dismal US jobs report pushed back expectations for rate rise in United States.

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"The market remains concerned about unscheduled supply interruptions with the latest coming from additional shut-ins in Nigeria," Dominick Chirichella, a senior partner at the Energy Management Institute, said.

"With the industry projecting a decline in total US crude oil stocks in this week's reports, the market bears are remaining on the sidelines."

Oil has swelled by more than 80 per cent since hitting a 12-year low earlier this year due to supply disruptions and declining US output.