Oil prices hit a two-month high yesterday – thanks to a tightening United States (U.S.)
crude market and the threat of sanctions against Organisation of Petroleum
Exporting Countries (OPEC)-member Venezuela.
Brent crude futures were 52.90 dollars per barrel earlier in
the day, their highest since May 25.
U.S. West Texas Intermediate (WTI) futures were up 16 cents
or 0.3per cent at $49.87 per barrel. The
entire WTI curve is close to moving back over $50 per barrel, with only
September and October a notch below that level.
The price rise put both crude benchmarks on track for a
sixth consecutive session of gains.
Prices have risen around 10 per cent since the last meeting
of leading members by OPEC and other major producers, including Russia.
At that instance, the group discussed potential measures to
further tighten oil markets.
“U.S inventories are showing massive drawdown, Saudi Arabia
seems intent on playing its role as the world’s swing producer.
“Impending sanctions on Venezuela by the U.S will almost
certainly be oil price-supportive,” said Jeffrey Halley, analyst at futures
brokerage OANDA.
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