Crude oil keeps climbing, adding to five-month highs

  • Crude oil futures forge ahead to fresh five-month highs amid continued signs of tightening supplies and fading worries over global economic growth.
  • WTI settled +1.6% at $62.58/bbl, marking a third straight daily gain and the highest closing level since Nov. 5, while Brent edged +0.5% at $69.37/bbl for its highest closing price since Nov. 12.
  • "The supply outlook remains top of mind of the oil market. Continued output curbs namely by Saudi Arabia set a bullish note... support prices and bring the much watched $70/bbl within reach," says Norbert Ruecker, head of economics at Julius Baer.
  • Bloomberg's latest survey found OPEC output fell for the fourth straight month, with Saudi Arabia continuing to curb production and Venezuelan output suffering as its economic and political crisis deepened; OPEC output fell by 295K bbl/day to 30.38M, according to the survey.
  • Against this production background, banks have raised their forecast for the full-year Brent price, with a WSJ survey of 12 investment banks forecasting an average just over $68/bbl vs. a $67/bbl outlook a month earlier.
  • ETFs: USO, XLE, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, OLO, SZO, OLEM, WTIU, OILK, OILX

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