Oil moves to fresh two-year high

The price of oil hit a fresh 26-month high this morning as ministers from producer nations signalled there were no plans to boost output.

US light, sweet crude rose 27 cents to $91.78 in Asia and London Brent crude rose 44 cents to $94.21.

Some members of the Organization of Petroleum Exporting Countries (Opec) said the group was unlikely to meet until June to discuss production moves.

A blizzard in north-eastern parts of the US has also pushed prices higher.

However, a Christmas Day interest rate rise in China prompted some concerns over growth in the country’s fuel demand.

“China’s interest rate hike is having some impact on the oil markets… because of concerns over how the tightening of monetary policy will impact demand growth,” said ANZ oil analyst Serene Lim.

Oil prices tumbled by 4% when China last raised interest rates in mid-October.

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell