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Oil prices climb to new 11-month high on falling U.S. stockpiles

Published 06/09/2016, 03:49 AM
© Reuters.  Oil prices climb to new 11-month high

Investing.com - Oil prices added to overnight gains in European trade on Thursday, climbing to a fresh 11-month high after data showed crude stockpiles in the U.S. fell for the third straight week last week.

Crude oil for July delivery on the New York Mercantile Exchange climbed to an intraday high of $51.67 a barrel, the most since July 16. It last stood at $51.27 by 07:50GMT, or 3:50AM ET, up 3 cents, or 0.06%.

A day earlier, New York-traded oil prices rose 87 cents, or 1.73%, after data showed that oil supplies in the U.S. fell more than expected last week.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 3.2 million barrels last week to 532.5 million. Market analysts' expected a crude-stock decline of 2.8 million barrels.

U.S. crude futures are up nearly 85% since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the rig count might start rising soon and the decline in U.S. production may slow.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery dipped 10 cents, or 0.19%, to trade at $52.41 a barrel after hitting a daily peak of $52.86, a level not seen since October 12.

On Wednesday, London-traded Brent rallied $1.07, or 2.08%, amid concerns over a disruption to supplies from Nigeria, where militants have staged a number of attacks on the country’s oil operations.

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Brent futures prices are up by roughly 90% since briefly dropping below $30 a barrel in mid-February as unplanned supply disruptions in Africa eased concerns over a global glut

Meanwhile, Brent's premium to the WTI crude contract stood at $1.14 a barrel, compared to a gap of $1.28 by close of trade on Wednesday.

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