Oil dips away from three-year highs on signs of overheated market

11 Jan 2018   Prices

Oil dipped away from three-year highs on Thursday on signs that a 13-percent rally since early December may have run its course, although a surprise drop in U.S. production and lower crude inventories offered prices some support. U.S. West Texas Intermediate (WTI) crude futures were at $63.46 a barrel at 0753 GMT, 11 cents below their last settlement, though still close to a December-2014 high of $63.67 per barrel reached the previous day. Brent crude futures were at $69.05 a barrel, 15 cents below their last finish, albeit also still close to the previous day’s peak of $69.37 a barrel – the highest level since an intra-day spike in May, 2015. “In Q1, the balance of risk to Brent lies to the downside, with prices overheating, record net-length built into the futures market and fundamentals set to weaken seasonally,” BMI Research said in a note. The […]

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