Crude Oil Hits 2016 High Amid Output Freeze Hopes

Although pegged back a little in the last few hours, prices of Crude Oil hit a near 4-month high in Asian trading this morning, reaching their highest level in 2016 as the US Dollar continued to find itself under pressure.

Oil prices rose as optimism grew that major producers would agree a deal to halt global production, whilst last weeks surprising fall in oil inventories and the Fed’s suggestion to have interest rate hikes this year, also supported prices.

This weeks increases mean that oil prices in general have soared more than 50 percent since the Organization of the Petroleum Exporting Countries (OPEC) bandied around the notion of a production freeze. Prices have rebounded from from 12-year lows with Brent Oil rising from $27 a barrel and U.S. crude oil rising from around $26 a barrel.
Unless the victim of a strong bout of profit taking later in the day, crude oil looks set for a fifth consecutive week of gains, whilst Brent Oil is on course to record a fourth consecutive weekly increase, the longest rising streak for both in over a year.

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Daniel Simmons