Oil Prices Reach Fresh High for 2016

Recent gains have given analysts reason to become more bullish on oil price forecasts, with those polled by Reuters raising their price expectations for the second month in a row after a two-year price rout.

During the trading session, the futures, considered to be the benchmark for crude oil prices in the USA, had traded up to a high of $45.18 per barrel.

After having reached its lowest price level in 12 years in February-touching $26.05 per barrel on February 11-hopes of falling crude oil supply from the U.S. have led to a recovery in crude oil prices since then.

Profit adjusted for one-time items and inventory changes fell to US$532 million from US$2,6 billion a year earlier, the London-based company said in a statement Tuesday. The Energy information Administration (EIA) reported USA commercial crude inventories rose by 2 million barrels to a total of 540.6 million barrels in the previous week. Output has fallen to 8,938,000 barrels per day (bpd) from a high of almost 9.7 million bpd in April, 2015.

Oil prices retreated from 2016 highs on Wednesday after the US government reported USA crude stockpiles rose to a record high last week as expected by analysts, despite an industry group saying otherwise.

Worldwide benchmark Brent crude futures were trading at $47.69 per barrel at 0101 GMT, down nearly half a dollar and a percentage point from their last close. Oil prices rose to their highest level since November on Wednesday. Nationwide inventories have increased to 540.6 million barrels, more than 100 million barrels above the five-year average.

Futures are up about 19 percent this month in NY, set for a third monthly gain and the largest increase since April 2015. While industry data pointed to a decline in crude oil inventories, the EIA disappointed oil traders when it reported an uptick in storage levels.

Earlier this month a meeting between oil cartel Opec and Russian Federation to try and agree a production freeze at January levels broke apart without a deal.

US West Texas Intermediate crude futures rose 86 cents to $44.90 a barrel. "That said, the oil market remains oversupplied, as best visible in US commercial oil inventories".

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