US West Texas Intermediate crude holds above $50 despite strong dollar and increased supplies from Russia, Libya and Nigeria

Francesca Washtell
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High Oil Prices Continue To Drive Gas Prices Steadily Upwards
Oil prices have buoyed in the last week since a provisional Opec agreement was reached (Source: Getty)

The price of US oil has stayed firm during trading today after breaking the $50 barrier yesterday evening for the first time since June.

West Texas Intermediate crude was down by 15 cents, or 0.3 per cent, in mid-afternoon trading, but remained about the $50 threshold to trade at $50.29.

Around 19 cents, or 0.36 per cent, was also shaved off the price of Brent crude today. The global benchmark was trading at $52.32 per barrel this afternoon.

Read more: Oil prices surge as Opec reaches historic deal to curb production

A boost to the dollar, which makes oil more expensive for holders of other currencies, and increases to physical oil supplies coming from Russia, Libya and Nigeria has shaved a small amount off prices.

However, prices are holding firm off the back of a provisional Opec agreement to cut output to between 32.5m and 33m barrels per day at a meeting earlier this month.

Read more: Should central banks prepare for higher inflation after Opec's output cut?

Yesterday, Algeria's energy minister hinted the organisation could lower production further when talks begin to finalise the deal in November.

This week, prices were also buoyed by a report from the US Energy Information Administration which showed oil stocks in the States had fallen by 3m barrels in the week ending 30 September – foiling concerns there would be a rise.

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