U.S. crude tops $65 for first time since 2014

|By:, SA News Editor

U.S. WTI crude oil surpasses $65/bbl for the first time since December 2014 before pulling back slightly, after data showed the 10th straight weekly drop in U.S. crude stockpiles.

WTI reached a high of $65.42/bbl, with its discount to Brent narrowing to $5/bbl vs. ~$6.50 at the beginning of the year; Brent also hits a new three-year high, climbing to $70.43/bbl.

The 1.07M-barrel U.S. drawdown was led by a 3.15M-barrel drop at the Cushing, Okla., storage hub, with traders citing a ramp-up in volumes on Plains All American's (PAA +0.4%) 200K bbl/day Diamond pipeline from Cushing to Memphis, Tenn.

Cushing stocks have fallen by more than 12M barrels over the past four weeks to 39.24M barrels and are now 40% lower than a year ago.

ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, USAI

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