Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil extends three-year high after record decline in stockpiles

Excess fluid sits on the rim of a barrel of oil based lubricant at Rock Oil Ltd.'s factory in Warrington, U.K., on Monday, March 13, 2017. Oil declined after Saudi Arabia told OPEC it raised production back above 10 million barrels a day in February, reversing about a third of the cuts it made the previous month. Photographer: Chris Ratcliffe/Bloomberg
Excess fluid sits on the rim of a barrel of oil based lubricant at Rock Oil Ltd.'s factory in Warrington, U.K., on Monday, March 13, 2017. Oil declined after Saudi Arabia told OPEC it raised production back above 10 million barrels a day in February, reversing about a third of the cuts it made the previous month. Photographer: Chris Ratcliffe/Bloomberg

Oil extended its three-year high as a record stretch of declines in U.S. crude stockpiles added to signs that global markets are burning off a chronic surplus.

Futures added as much as 1.3 percent in New York after climbing 1.8 percent on Wednesday.  A weaker U.S. dollar helped to underpin oil’s gain. Supplies slid to the lowest level since February 2015 and edged toward the five-year average, according to Energy Information Administration data. American producers are pumping crude at the highest rate in more than three decades.

Oil is extending a two-year gain as the Organization of Petroleum Exporting Countries and its partners cut supply to reduce a global inventory overhang. The market may re-balance by April, according to Vagit Alekperov, chief executive officer of Lukoil PJSC, Russia’s second-biggest producer.

“The sentiment is still positive, and it seems the path of least resistance is still to the upside,” said Giovanni Staunovo, commodity analyst at UBS Group AG in Zurich. “To see a change in sentiment, inventory builds are needed. They’re not there yet but are still likely in the coming weeks.”

West Texas Intermediate for March delivery traded at $66.05 a barrel on the New York Mercantile Exchange at 10:40 a.m. in London after climbing as much as 83 cents to $66.44, the highest intraday price since December 2014. Total volume traded was almost double the 100-day average. WTI advanced $1.14 to $65.61 on Wednesday.

The Bloomberg Dollar Spot Index, a gauge of the currency against 10 major peers, slipped to the lowest in three years. A weaker greenback boosts investor appetite for raw materials priced in the U.S. dollar. The Bloomberg Commodity Index that measures returns on 22 basic resources from crude to copper rose to the highest intraday level since October 2015.

Brent for March settlement increased as much as 67 cents, or 1 percent, to $71.20 a barrel on the London-based ICE Futures Europe exchange, the highest intraday price since December 2014. The global benchmark crude traded at a premium of $4.76 to WTI.

U.S. crude stockpiles fell by 1.07 million barrels last week to 411.6 million, less than the 2 million-barrel drop forecast in a Bloomberg survey. Oil output rose by 128,000 barrels a day to 9.88 million a day, the highest level in weekly data compiled by the EIA since 1983.

Oil-market news:

Saudi Arabia’s oil minister said the initial public offering of oil giant Aramco will take place “when the time is right,” revealing the first crack in the kingdom’s earlier plan to debut the company this year. Oil output from Kazakhstan’s Kashagan oil field has risen to 300,000 barrels a day, according to the nation’s Energy Ministry. The Kashagan venture aims to boost production to 370,000 barrels a day this year.

Recommended for you

Tags

More from Energy Voice

Latest Posts