The price of oil for delivery in July passed $ 50 o’clock 3:27 at night and lay then a few cents above the psychologically important threshold. The last time North Sea oil cost so much was on November 3 last year.
Less stock
Oil prices crept up toward $ 50 late Wednesday, but was still a little bit below the closing price midnight. The clock 2 continued trade fairly flat, but a little after three o’clock price went up the last bit to 50-dollar mark.
The US Department of Energy reported Wednesday that the country’s oil inventory is diminished, which created expectations of a tightening in oil market.
– When you look at the bearings, realizing people that demand remains while production drop offs. It should bring the market back into balance, said Phil Flynn at Price Futures Group news agency DPA.
Two years ago started oil prices on a steep decline from 100 a barrel to just $ 27 in early 2016 as a result of a persistent surplus on the supply side.
– Hardly lasting
rising prices means that more costly recovery methods, such as extraction of shale oil in North America, again become attractive, and increased production with such methods are likely to curbing inflation, believes analyst Carsten Fritsch in Commerzbank.
– in addition, production is about to get started again in areas that were affected by the forest fire in Canada, so we do not think price will remain above $ 50 for very long, says Fritsch.
There is little that separates the price of North Sea oil and US light crude for the time, but the US oil is around 20 cents below the North Sea oil.
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