Oil Prices is At A Three-year Highs as Its March to $70 Slows

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Today, as prices of oil marched up to its three-year highs, data from the United States US stockpile somewhat dampened the momentum of the black stuff.

According to Thomson Reuters, weekly data from the Energy Information Administration (EIA) of the United States revealed that crude stockpiles dropped by 4.9m barrels, over the 3.89m barrel draw that was expected by analysts.

Inventories of gasoline increased by 4.1m barrels to near the peak of the average range, while some analysts anticipated a smaller 2.6m barrel rise.

A knee-jerk decline prompted Brent crude oil to an intra-day low amounting to $68.75 per barrel. However, it soon recovered to trade at around $69 again. Earlier today, it was able to reach a high of $69.37 per barrel.

Prices of West Texas Intermediate (WTI) of the United States reached a December 2014 high amounting to $63.67 per barrel earlier on.

The market analyst at CMC Markets UK, David Madden, stated: “WTI and Brent crude oil have sold off in the wake of the EIA report which showed yet another decline in oil stockpiles, while gasoline inventories increased.

“It was the typical market reaction as oil initially jumped due to the drop in oil inventories, then [it sank] in that gasoline stockpiles surged, which prompted selling.”