Oil futures briefly lost gains after US Federal Reserve statements on a potential interest-rate increase, but they bounced back to close Monday at a 10-month high.
At the close of trading today, West Texas Intermediate (WTI) crude for July delivery was up 2.2 percent, settling at US$49.69 per barrel on the New York Mercantile Exchange—a closing WTI hasn’t seen since 21 July 2015.
While WTI was up US$1.07 per barrel, Brent crude for July settled 1.8% higher, closing at a seven-month high of US$50.55 per barrel after hitting US$50.83 per barrel earlier in the day.
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A more dovish attitude from the U.S. Federal Reserve Bank, a revival of Niger Delta militancy that has taken significant volumes of crude production offline in Nigeria and the reduced production coming out of Canada’s oil sands provinces ravaged by wildfires have all contributed to the jump in oil prices.
A draw on U.S. crude inventories at Cushing, Oklahoma, also helped boost WTI futures.
Crude oil prices are now up around 80 percent compared to their low earlier this year of below US$30.
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As Oilprice.com reported earlier today, the EIA’s drilling productivity report from the Energy Information Administration (EIA) will not be out until 13 June, while the EIA’s Short Term Energy Outlook is due out on 7 June. Early next week will also see monthly reports from OPEC and the International Energy Agency (IEA).
By James Burgess of Oilprice.com
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