28/05/2018
NEW YORK (Reuters)
Oil prices jumped above $ 80 a barrel during trading on Thursday for the first time since November 2014, before giving up gains on the rise of the dollar and the increased US production. It ends the session with little change.
A rapid decline in oil supplies from Venezuela, concern over a disruption in Iran's exports due to new US sanctions, and a decline in global stocks pushed oil prices up about 20 percent in 2018.
The US dollar hit a four-month high against the yen as the US Treasury yields rose to a seven-year high.
The strength of the dollar makes oil more expensive for crude-importing countries such as those in Asia, which faces a bill of up to $ 1 trillion for imports this year as demand on the continent hit a higher record.
Global Brent crude climbed $ 80.50 a barrel, but later dropped its gains to settle at $ 79.30, an increase of just two cents.
The US benchmark WTI futures contract closed unchanged at $ 71.49 a barrel, which is earlier recorded its highest level since November 2014 at $ 72.30 a barrel.
Global stocks of crude oil and fuel have fallen sharply in recent months on strong demand and OPEC-led output cuts.
The US oil production jumped 27 percent in the past two years to a record 10.72 million barrels per day, which is very close to the production of Russia, the world's largest producer of crude, that is 11 million barrels per day.
