Oil prices in the United States of America popped to a level that was not seen ever since 2014 following a report that showed that American crude inventories declined for the tenth week in a row.
Today, the crude benchmark of the United States of America, West Texas Intermediate, reached a $65.42 per barrel before slipping back down by around a dollar.
Meanwhile, the oil prices of Brent crude briefly sprang to $70.43 per barrel, a new three-year high.
The Energy Information Administration (EIA) said that inventories in the United States dropped to 411.6m barrels, the lowest level since February 2015.
The EIA said that production in the United States grew to 9.9m barrels per day (bpd), which is near an all-time high of just more than 10m bpd set in 1970.
A market analyst at CMC Markets, David Madden, stated: “WTI and Brent crude oil ticked up in the wake of the EIA report, which showed a smaller decline than anticipated in US oil inventories.
“Oil stockpiles in America fell by 1.07m barrels, while traders were anticipating a drop of 1.95m barrels. The announcement follows the report from the American Petroleum Institute (API) yesterday which showed an unexpected build on oil inventories.”
The increase in oil prices happened as some analysts warned that the rally in Brent was losing steam.
A research that was conducted by a Fitch Group company, BMI, said that prices were appearing to be “increasingly vulnerable to a correction over the coming weeks, as oil market fundamentals begin to weaken.”