Oil price rises to highest level since 2014

  • Oil price rises to highest level since 2014

Oil price rises to highest level since 2014

As energy markets strengthen and crude oil prices break back above $70 per barrel, income-minded investors may want to take a look at master limited partnerships or MLP-related ETFs.

Also, the prices of Brent and WTI rose to $69.81 and $64.53 per barrel respectively while the price of Organisation of Petroleum Exporting Countries, OPEC, basket of 14 crudes stood at $67.24 per barrel.

Gulf OPEC producers plan to keep their oil output in the current quarter below the year-earlier level despite strong demand growth and a drop in global inventories, a senior OPEC source familiar with Gulf oil thinking said.

This is published unedited from the PTI feed.

United States crude stockpiles fell to 419.5 million barrels last week, the lowest level since August 2015, according to EIA data Wednesday.

"Eugen Weinberg, head of commodities research at Commerzbank. thinks the oil market is overheating: "$70 is too much.

The US Department of Energy reported this week that US crude oil production had fallen by 290,000 barrels per day last week, although the bank thinks this is likely to be temporary.

"I think it starts to get hard for us to get much higher from here", said John Kilduff, founding partner at energy hedge fund Again Capital.

OPEC and the non-OPEC countries that agreed to crude oil production cuts in 2017 also agreed to continue limiting output through the end of 2018.

USA crude oil production C-OUT-T-EIA is expected to hit 10 million bpd next month, behind only Russian Federation and Saudi Arabia.

While OPEC producers have chose to roll over the production cuts through the end of 2018, non-OPEC supply will increase more than previously expected, and total supply growth demand growth next year, the International Energy Agency (IEA) said in December's Monthly Oil Market Report.

Oil prices shoot up in just 3 months.

Oil prices have risen more than 13 percent since early December, and there are indications of overheating.

In Asia, the world's biggest oil consumer region, refiners are suffering from high prices and ample fuel supplies. WTI was down 0.61 percent to $63.41 per barrel.

On Tuesday, the EIA boosted its expectations for production in coming months, and now sees overall production at record highs, surpassing 11 million barrels per day (bpd) by 2019.

Trading volumes were higher than average, with a flurry of deals at about 10:00 a.m. EST as prices jumped. Iran's oil minister said this week that OPEC is not interested in an oil price above US$60.

Relatively weak Chinese December oil data weighed on prices, traders and analysts said.