58 views

Brent crude and WTI: US oil breaks $50 per barrel mark for the first time since June

Jessica Morris
Follow Jessica
High Oil Prices Continue To Drive Gas Prices Steadily Upwards
It came after positive US oil data yesterday (Source: Getty)

US oil swung through the $50 per barrel mark today for the first time since June.

West Texas Intermediate crude, the US benchmark, rose 1.12 per cent to $50.39 per barrel in early evening trading.

Brent crude, the global benchmark, rose 1.31 per cent to $52.54 per barrel, also hitting a four week high.

Read more: Goldman Sachs holds onto its commodities crown

The benchmarks were buoyed by yesterday's report from the US Energy Information Administration showing US oil stocks fell by 3m barrels in the week ending 30 September.

"Oil prices continued to gain strength with WTI crude gaining a foothold above $50 per barrel after this week's surprise US inventory drawdown added to bullish sentiment built up after last week's Opec decision to cut output," Jasper Lawler, analyst at CMC Markets, said.

Read more: Algeria indicates Opec could lower production further in November deal

The Organisation of Petroleum Exporting Countries provisionally agreed to cut output to between 32.5m and 33m barrels per day at a meeting earlier this month.

Analysts doubt that a deal will accelerate the chronically oversupplied market's recovery in the longer-term, and they are also sceptical about Opec's ability to orchestrate such an agreement.

Previous attempts to reach a freeze deal fell through due to tension between regional rivals Iran and Saudi Arabia.

Related articles