Oil hovers near 13-month highs as storm hits U.S. output, Fed assures rates staying low

02/25/2021

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Julia Payne | Reuters

LONDON (Reuters) – Oil prices extended gains for a fourth session on Thursday to reach the highest levels in more than 13 months, underpinned by an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the storm in Texas.

Brent crude futures for April gained 17 cents, 0.25%, to $67.21 a barrel by 1306 GMT, while U.S. West Texas Intermediate crude for April was at $63.42 a barrel, up 20 cents, 0.32%.

Both contracts hit their highest since Jan. 8, 2020, earlier in the session with Brent at $67.70 and WTI at $63.79. The April Brent contract expires on Friday.

An assurance from the U.S. Federal Reserve that interest rates would stay low for a while weakened the U.S. dollar, while boosting investors’ risk appetite and global equity markets.

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