Oil went up on Thursday which sent global benchmark Brent at one point surging above $71 a barrel for the first time since 2014 with support from a weaker U.S. dollar, lower global supplies and a current heavy weakening in the inventories of U.S. crude.
The U.S. dollar dropped to its lowest since December 2014 against a basket of rival currencies .DXY, sliding even further because the European Central Bank president made comments that boosted the euro one day after the U.S. Treasury Secretary Steven Mnuchin said a weaker dollar was beneficial.
When the dollar falls it makes dollar-denominated commodities cheaper for other currency holders which in terms, supports oil prices. Another key helper to the price of oil is the sudden decline in oil inventories as the Organization of the Petroleum Exporting Countries and allies including Russia have continued supply restriction.
Brent crude LCOc1, the international oil benchmark, rose to about $71.28 a barrel, the highest it reached since December 2014.
U.S. West Texas Intermediate crude CLc1 futures went up 0.7 percent, landing at $66.05 a barrel. Earlier, the contract climbed to $66.66, also the highest since December 2014.
U.S. crude oil production has been expected to surpass 10 million barrels a day in February, on its way to a record ahead of previous forecasts, said by the U.S. government’s Energy Information Administration.