US Crude Oil Price Hits 3½-Year High, More Gains Expected
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US crude oil price news and analysis:
- The US crude oil price continues to surge and a further advance seems likely, perhaps after a short period of consolidation.
- Lower inventories and developments in Canada, Libya and Iran are all pushing prices upwards.
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Further gains likely for US crude oil
The price of US crude oil has reached levels not seen since November 2014 and a further advance is now on the cards, perhaps after a few sessions to catch its breath.
Data from the US Department of Energy, released Wednesday, showed that crude oil inventories dropped by 9.891 million barrels in the week to June 22, more than three times the draw predicted by analysts.
Moreover, speculation is increasing that at least some US allies will agree to a White House demand to halt oil imports from Iran by November. In Canada, supplies are being disrupted by a power outage and in Libya there are concerns that a political power struggle will disrupt supplies from there too.
The result has been a climb in the price of US crude to more than $72 per barrel and, as the chart below shows, a climb that has been in place since last September is now extending upwards.
US Crude Oil Price Chart, Weekly Timeframe (March 2014 – June 2018)
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.