WTI Crude Oil hits a fresh 59-week high as US oil output shrinks

Commodity Market: US Crude Oil rises to a fresh 59-week high amid a sharp drop in US oil production, weaker US Dollar

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Futures on US West Texas Intermediate Crude Oil extended gains from the previous trading session on Thursday, while touching a fresh 59-week high, as a Texas winter storm led to a considerable drop in US crude oil production last week, while the Federal Reserve assured markets that monetary policy would remain accommodative.

The latest data by the US Energy Information Administration (EIA) showed that US crude output had shrunk by over 10% (1 million barrels per day) last week due to a severe cold front in the key producing state of Texas.

Additional support to oil prices came on the back of a weaker US Dollar, after the Federal Reserve Bank once again pledged to keep interest rates low for some time in support of economic recovery.

“Combined with a dovish Jerome Powell and an already tight physical market, oil prices exploded higher,” Jeffrey Halley, senior market analyst for Asia Pacific at OANDA, was quoted as saying by Reuters.

Meanwhile, on the supply front, the Organization of the Petroleum Exporting Countries and allies including Russia, OPEC+, will hold a meeting on March 4th to discuss a modest easing of supply curbs from April amid a recovery in prices.

As of 10:00 GMT on Thursday WTI Crude Oil Futures were edging up 0.33% to trade at $63.43 per barrel, after earlier touching an intraday high of $63.79 per barrel, or its strongest price level since January 8th 2020 ($65.65 per barrel). WTI Crude Oil Futures have risen 21.63% so far in February, following another 7.58% surge in January.

Brent Oil Futures were edging up 0.15% on the day to trade at $67.35 per barrel, after earlier touching an intraday high of $67.68 per barrel, or its strongest price level since January 8th 2020 ($71.28 per barrel). Brent Oil Futures have risen 22.60% so far in February, following another 6.38% surge in January.