Photo: Spencer Platt, Getty Images Agence France-Presse
Prices were pushed higher Friday after a report from the u.s. department of Energy showing a decline in crude inventories in the United States.
New York — oil new york ended the year 2017 over US $60 Friday, for the first time since June 2015, supported by a stagnation in the number of oil wells active in the United States and the decline in crude inventories.
The barrel of “light sweet crude” (WTI) for delivery in February, the benchmark u.s. crude, has gained 58 cents US to close at 60,42 US $on the New York Mercantile Exchange (Nymex). “This is a very nice way to end the year, and this highlights the strong demand seen this year,” responded Phil Flynn of Price Futures Group.
Prices were pushed higher Friday after a report from the u.s. department of Energy (DoE) showing a decline in crude inventories in the United States. They “have been in decline for six consecutive weeks, they are less than 50 million barrels to those of last year at the same time,” said Robert Yawger of Mizuho USA.
The prices were also buoyed by a stagnation in the number of oil well assets, a statistic released each Friday by the company Baker Hughes. The increase in the number of wells is a leading indicator of a future rise in production.
“This is the second week in a row where no wells is added [to the overall count of active wells in the country]. There may be a break because of the holidays, but it may also be the sign of a pause in the drilling, ” responded Mr. Flynn.
The report of the DoE had already noted this week in a setback to the weekly production of crude oil in the United States for the first time after seven records on.
On the year, the oil in new york rose by 12.4 %. “Many people have said that the agreement of reduction of crude production by OPEC would not impact on the market this year, that the production of shale (the United States) would replace these cuts, as OPEC tricherait, or that the request would be dull. All of this has been proven wrong “, he added.
The Organization of the petroleum exporting countries and its partners have extended the end of November an agreement aimed at lowering global supply. “The geopolitical tensions between Iran and saudi Arabia on one side and the difficulties in Venezuela and Nigeria on the other, have also supported prices throughout the year, said Mr. Flynn.
More than 20 % in Stock
The Stock market, Wall Street finished down on Friday. The Dow Jones lost 0.5% and the Nasdaq up 0.7 per cent. According to the final results at the close, the Dow Jones was down 118,29 points to 24 719,22 points. The Nasdaq, to dominant technological, has lost 46,77 points to 6903,39 points. The expanded index S P 500 has dropped 0.5 %, or to 13.93 points, to 2673,61 points.
But the three major indices of Wall Street, show on the year generated double-digit growth, the Dow Jones has advanced by 25.1 %, the Nasdaq by 28.2 % and the S P 500 19.4 %.
In Toronto, the S P/TSX fell after two sessions of closing at record levels. It closed the year at 16 209,13 points, up 6 % from the end of 2016.