The price of US WTI crude oil, as well as the global benchmark WTI Brent, has hit its highest level since May during Asian trade hours. There was a dip in US Oil prices rose to their highest levels since May early on Monday as a dip in U.S. output which was viewed as a tightening in the market and the threat of sanctions against Venezuela. This is putting oil traders on edge.
The global benchmark WTI Brent crude futures, was up, midnight GMT, by 18 cents or 0.3 percent to $52.70 per barrel. Prices had hit $52.76, the highest level since May 25.
US West Texas Intermediate crude futures were up 11 cents. This is 0.2 percent, at $49.82 per barrel. These gains put both crude benchmarks on track for six consecutive days of gains.
The price of oil has risen nearly 10 percent since the last meeting of the Organization of the Petroleum Exporting Countries (OPEC). They and other major producers, including Russia met and discussed potential measures to further tighten oil markets.
Oil is Around a Key Technical Level
WTI futures are threatening to crash through $50 per barrel. Brent has pushed above $52 per barrel as the fundamentals continue to suggest a more balanced crude oil market. We are noting that the front of end of the curve has moved into what is called backwardation. This is a technical sign the physical market is tightening.
This chart condition is a market condition in which prices for immediate delivery of any product is higher than those later on.
Brent WTI futures prices, for September delivery, are currently 35 cents above those for October.