Futures added as much as 1.3% in NY to the highest intraday level in nearly three years.
The benchmark North American oil price hit its highest level since 2014 on Wednesday as two new data points came out showing supplies are drawing down, and an OPEC pledge to turn off the taps seems to be working.
The Energy Information Admin is out with its U.S. inventories report at 10:30 am ET. "It still rounds off a really strong year", he said.
It's also interesting to note that crude oil prices have increased by 115% over the last 2 years.
Oil Price Hits Three-Year High
Brent has rallied over 50% since June past year, propelled by geopolitical tensions, supply disruptions and production cuts by the Organization of the Petroleum Exporting Countries.
Responding to the severe crash and deflation in the price of oil in the late 1990s, merger activity helped improve economies and scale of production for these companies and today they control almost 5% of the world's oil and natural gas reserves.
Market participants were awaiting a US decision on whether to extend temporary waivers on sanctions against Iran due on Friday. Analysts had expected output to break the 10m bpd mark.
The rise in price is said to constitute a good omen for the nation's 2018 budget which was based on $45 per barrel and 2.3 million daily oil output.
Wells Fargo & Company (WFC) Insider bought 49 Shares
The company was maintained on Tuesday, June 6 by Jefferies. (NYSE:HON) has "Buy" rating given on Tuesday, August 8 by Oppenheimer. It worsened, as 92 investors sold WFC shares while 725 reduced holdings. 103 funds opened positions while 495 raised stakes.
Brent was trading below $30 in early 2016 as a result of a massive supply glut and weaknesses in the world economy. Brent's settlement still represents a three-year closing high.
Meanwhile, West Texas Intermediate gained 0.81 per cent, to Dollars 63.47 per barrel, while Brent crude rose 0.41 per cent at USD 69.10.
WTI light sweet crude oil rose 60 cents to USD63.64 a barrel this morning, the highest in more than three years.
The decision is due to be announced Friday if it stands. At least this is what the Iranian Minister of Oil said the other day. Shell's turn-round has been stronger than most, helped by new production and cost synergies from its $50bn acquisition of BG Group, completed past year. "This would, of course, be far better news for United Kingdom motorists". In both 2018 and 2019, EIA expects total global production to be slightly greater than global consumption, with United States production increasing faster than production in any other country, contributing to modest inventory builds.
Time for Ajinkya Rahane to return?
There are reports that Indian opener Shikhar Dhawan can be replaced by KL Rahul in the second Test starting from January 13. There was enough to please India about their performance in that first Test, but also several areas that could be improved.
"For those hoping for an end to the bull market, it's probably a good idea to wait a few days before calling an end to the rally", analysts at TAC Energy said.
Such an outcome will provide a huge upswing in valuation (and share prices) of the likes of Woodside Petroleum Limited (ASX: WPL), Oil Search Limited (ASX: OSH), Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG).
A Photograph Helps Vikas Gupta Win His Task!
But, when Puneesh sees the argument, he tells Vikas that he shouldn't have brought something like this in the game at all. Hina lost her cool and lashed out at Vikas and said, "I can not believe that you would stoop to such lows for a task".