GO
Loading...

Oil Prices at 2-month High Above $62

Oil climbed to a two-month high near $63 on Thursday, building on the previous session's gains after an unexpected drop in U.S. winter fuel stocks and signs of solid economic growth in the world's top consumer.

U.S. crude was up 11 cents at $62.57 a barrel at 1007 GMT. It earlier hit $62.68, its highest since Oct. 2.

Brent crude was up 39 cents at $63.46.

U.S. inventories of crude oil and refined products fell last week as imports eased and demand was robust, the Energy Information Administration (EIA) said on Wednesday.

Distillate stocks, including home heating oil, fell by one million barrels. Analysts had expected a stock build.

"The unexpected pull on U.S. stock levels was an immediate catalyst for the market to trade up," said Andrew Harrington, a natural resource analyst at ANZ Bank in Sydney.

Private weather forecaster AccuWeather said colder temperatures would hit the U.S. Northeast, the world's biggest heating oil market, by the end of the week.

Prices also rallied on stronger readings of the U.S. economy, which expanded at a faster-than-expected 2.2 percent clip in the third quarter, according to revised figures.

The market's rally appeared likely to calm some anxieties within OPEC, which meets in two weeks to decide whether or not to deepen the 1.2 million barrels per day (bpd) production cut it imposed from the start of November to halt a price slide.

Kuwaiti oil minister Sheikh Ali al-Jarrah al-Sabah told Reuters on Wednesday that prices were "very comfortable" and that he saw no need to cut output further.

Tanker movements suggest the restraints are taking hold.

Consultancy PIRA Energy said that OPEC crude exports had fallen by 1.28 million bpd in the four weeks to Nov. 19 and were 1.7 million bpd below their recent peak in mid-October.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video