News Commodity Market News

Crude oil corrects from 4-year high on profit taking

12-Jan-2018

NYMEX crude oil trades in a narrow range above $63 per barrel Friday after hitting a 4-year high of $64.77/bbl in intraday trade yesterday.

Crude has rallied more than 11% since December largely supported by OPEC's decision to extend production cuts, decline in US crude oil stocks and firmness in US equity market.

US crude oil stocks fell by 4.948 million barrels to 419.5 million barrels, the lowest level since Aug.2015. EIA weekly report also noted a 2.96% decline in weekly US crude production last week.

The recent rise in crude is also supported by weakness in US dollar. The US dollar index hit 4-month low on disappointing economic data and monetary tightening outlook of other central banks.

However, weighing on price is forecast of record high production in US and decline in Chinese crude imports last month.

China's crude imports fell 9% last month to 33.7 million tonnes. China's crude imports however rose 10.1% to record high level of 419.57 million tonnes in 2017.

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