Brent Breaks Above $70 a Barrel to Hit Highest Since 2014
LONDON (Dispatches) - Brent crude, the international oil benchmark, have risen above $70 a barrel for the first time since 2014, extending the market’s strong start to the year.
Oil has increasingly found support as crude stockpiles have fallen and market participants have focused on geopolitical risk in producer countries. Separately, Houthi combatants have threatened to cut off Red Sea shipping lanes in response to Saudi-led coalition advances. Local news reports also said that Saudi air defense forces had intercepted a ballistic missile fired by Houthis on Najran city, in the south west of the kingdom.
Brent rose as high as $70.05 a barrel on Thursday, its highest since December 2014. It pared its gains in late afternoon trading, up 53 cents to $69.72 a barrel.
"There is a really strong bullish sentiment in the market and it is feeding off itself, taking Brent to $70 a barrel,” said Alexander Poegl at consultancy JBC Energy.
"Question is how long this upside rally can continue.” West Texas Intermediate, the U.S. marker, gained further ground adding 98 cents to $64.56 a barrel — also its highest in more than three years.
Oil has increasingly found support as crude stockpiles have fallen and market participants have focused on geopolitical risk in producer countries. Separately, Houthi combatants have threatened to cut off Red Sea shipping lanes in response to Saudi-led coalition advances. Local news reports also said that Saudi air defense forces had intercepted a ballistic missile fired by Houthis on Najran city, in the south west of the kingdom.
Brent rose as high as $70.05 a barrel on Thursday, its highest since December 2014. It pared its gains in late afternoon trading, up 53 cents to $69.72 a barrel.
"There is a really strong bullish sentiment in the market and it is feeding off itself, taking Brent to $70 a barrel,” said Alexander Poegl at consultancy JBC Energy.
"Question is how long this upside rally can continue.” West Texas Intermediate, the U.S. marker, gained further ground adding 98 cents to $64.56 a barrel — also its highest in more than three years.