NEW YORK—Crude oil futures settled at above $90 a barrel on Wednesday, the highest level in more than two years.
By market close, crude oil futures for Feb. 2011 deliveries settled at about $90.40 per barrel, according to data from the New York Mercantile Exchange, the highest level since October 2008.
The U.S. Energy Information Administration said on Wednesday that crude oil inventories in the United States fell by 5.3 million barrels last week, which partially contributed to the rise in oil prices and seen as bullish development for commodities traders.
In addition, winter months typically see higher demand for oil due to heating and transportation needs, which also affects the recent upward swing of oil prices. Until this week, colder than average temperatures were experienced in North America as well as Europe.
According to a Reuters poll this week, the Organization of Petroleum Exporting Countries (OPEC) will be pressured to produce more oil earlier than forecasted due to record-setting demand this winter and higher-than-expected demand in early 2011.
Oil fell from highs in 2008 after the global economic recession sapped worldwide demand for oil, but as nations recovery from the crisis, ramping industrial demand—especially from East Asia—will likely push oil prices past the $100 mark in 2011.
By market close, crude oil futures for Feb. 2011 deliveries settled at about $90.40 per barrel, according to data from the New York Mercantile Exchange, the highest level since October 2008.
The U.S. Energy Information Administration said on Wednesday that crude oil inventories in the United States fell by 5.3 million barrels last week, which partially contributed to the rise in oil prices and seen as bullish development for commodities traders.
In addition, winter months typically see higher demand for oil due to heating and transportation needs, which also affects the recent upward swing of oil prices. Until this week, colder than average temperatures were experienced in North America as well as Europe.
According to a Reuters poll this week, the Organization of Petroleum Exporting Countries (OPEC) will be pressured to produce more oil earlier than forecasted due to record-setting demand this winter and higher-than-expected demand in early 2011.
Oil fell from highs in 2008 after the global economic recession sapped worldwide demand for oil, but as nations recovery from the crisis, ramping industrial demand—especially from East Asia—will likely push oil prices past the $100 mark in 2011.
