Brent crude’s value increased today and stayed above $109 a barrel, once again on expectations that the US Federal Reserve will delay trimming its monetary policy until next year, which would address concerns about oil demand in the US economy.
Brent crude gained 15 cents to settle at $109.79 a barrel, while US crude oil slipped by 30 cents to stay at $98.79, reported Reuters.
Refinery maintenance and shifting pipeline flows around Cushing have pushed Brent, while reduced global supply added further support, with both Libya and Nigeria dropping their output.
Nigerian industrial scale oil theft, sabotage and technical problems have caused crude output to drop to less than 1.9m barrels a day, the lowest since mid-2009, when production briefly dipped to a 20-year low of 1.5m b/d.
The US crude oil has seen downfall after the country’s crude oil inventories increased by four million barrels to 374.5 million, well above an increase of 2.2 million forecast in a Reuters poll.
US oil prices also dropped as delivery hub for the US oil benchmark, Cushing and Oklahoma inventories increased by 366,000 barrels to 32.99 million.
Image: Brent’s value increased following a fall in Nigerian and Libyan output. Photo courtesy of freedigitalphotos.net.