Seems like analyst projections were a bit way off for the price of oil. Oil price reached $71 on Wednesday – an eight-month high ever since oil eased from record levels next year. Weak dollar and decreasing US supply sent the oil above the $70 mark.
In addition, New York futures contract for July deliveries are hit a high of $71.79 – it’s highest since October 2008 – before falling to $71.33. London North Seas crude also hit a high of $71.20 before settling to $70.80.
The US Energy Information Administration reported that demand is on the up again as American crude reserves dropped 4.4 million barrels in the week – beating projections of only 700,000 barrel decline. Strong demand pushes prices upward.
The weak dollar also contributed to the price hike as dollar-priced crude became cheaper for those buyers with stronger currencies.
Source: AFP
