Oil prices continue to rise in icy weather
World oil prices rose to fresh two-year highs this evening as traders reacted to news of plunging crude reserves in leading consumer the United States.
Brent crude jumped to $93.94 a barrel – the highest level since October 2008. It later stood at $93.77, up 57 cents from Tuesday’s close. US crude soared to a similar peak at $90.80, before pulling back to $90.47, up 65 cents.
The US Department of Energy (DoE) announced this afternoon that American crude stockpiles dived by 5.3 million barrels in the week to December 17. That was more than double market expectations for a drop of 2.3 million barrels and indicated strengthening energy demand in the world’s biggest economy.
Petrol reserves rose 2.4 million barrels, the DoE added. That was greater than market expectations for a gain of 900,000 barrels.
Ahead of the US news, oil prices were already trading at two-year peaks on the back of cold weather in the northern hemisphere, the weak dollar and bullish Chinese energy demand, analysts said.
Icy weather across Europe and north-eastern US states – which forecasters said would last until the end of the year – lifted prices as demand for heating oil increased.
