Oil prices on Tuesday reach an all time high for this year on a weak dollar and on the expectations of a fifth consecutive weekly drop in crude supplies from the United States.
Light, sweet crude oil meant for delivery for the month of July went up US$ 1.06 or 1.8 per cent on Tuesday to reach US$ 61.26 per barrel on the New York Mercantile Exchange. This has been the highest settlement this year since December 9. The global benchmark Brent was up 61 cents or 0.9 per cent, to reach US$ 65.49 per barrel on ICE Futures Europe.
Oil prices in the United States have gone up 41 per cent after dropping to a near six year low in March this year. Traders are sure of the fact that the worldwide market for crude is becoming less oversupplied since the demand has gone up and new drilling activities in the country have plunged. Crude oil inventories in the United States have weakened four consecutive weeks after reaching an all time high in April.
The Wall Street Journal surveyed analysts are found that these analysts anticipate the United States Energy Information Administration to report on Wednesday that crude stockpiles dropped by 1.6 million barrels in the week that ended on May 29.
Gene McGillian, a senior analyst at Tradition Energy said on Tuesday that the belief that there will be yet another drawdown in crude oil stocks has enabled somewhat of a bid right back into the market.