Brent oil hit a 2015 high before settling down with U.S. crude on Monday as Saudi Arabia’s plan to halt bombing in Yemen eased tensions over the security of oil Middle East supplies. A stronger dollar, following the largest U.S. factory orders in eight months, had also weighed on crude. [FRX/]
Even so, the price drop was cushioned by data from market intelligence firm Genscape showing a further tightening in supplies at the U.S. crude storage hub in Cushing, Oklahoma. UK Brent crude LCOc1, the more widely used global oil benchmark, touched the year’s high of $67.10 before settling down just a penny at $66.45 a barrel.
A public holiday in Britain had limited trading volumes in Brent. U.S. crude CLc1 settled down 22 cents at $58.93. A Saudi-led Arab alliance, waging an air campaign against Houthi fighters in Yemen, was considering calling a truce to allow humanitarian relief, Saudi-owned al-Arabiya television quoted the country’s foreign minister as saying.