Oil prices hike in Asian markets

Prices of Brent crude oil touched its highest level in 27 months due to production shutdowns and increasing global energy demand

Source: Press TV
http://www.presstv.ir/detail/159928.html


Oil prices have climbed in Asian trade markets for a fourth consecutive day with the Brent crude oil reaching its highest level in 27 months.

The price of New York's light sweet crude for February delivery reached $92.08 per barrel after gaining 22 cents during Wednesday's trading.

Analysts believe that the persisting hike in oil prices is attributed to a sharp decline in the US crude stockpiles.

The US crude stockpiles sank by over two million barrels last week with rising demand for oil amid unusually cold climate across the United States as many states were hit by severe blizzards and heavy snow storms over the past weeks.

Meanwhile, the price of Brent crude oil touched its highest level in 27 months due to production shutdowns and increasing global energy demand.

Brent reached $98.80, its highest level since April 2009, before trimming gains and eventually closing at $98.12, up 51 cents.

The rise came after two Norwegian oil fields were shut down on Tuesday due to a gas leak. However, they reopened soon after trading ended.

Alaskan oil production also continued to be hit by a pipeline leak. US light crude reached $91.86 after witnessing a 75-cent rise.

The leak in Alaska caused the US state's main Trans-Alaska Pipeline to shut down.

However, output through the pipeline was resumed at two thirds of its usual level on Wednesday.

“Brent was now expected to hit $100 a barrel,” said Commerzbank oil analyst Carsten Fritsch, quoted by BBC.

“It seems only a matter of time, if sentiment remains positive and more disruptions on the supply side come in,” he added.

The Trans-Alaska Pipeline is important because it carries almost 12% of US crude output. It is due to become fully operational later this week.