Economics
Crude Surges to $80 as Investors Zero in on Shrinking Surpluses
- Brent trading at largest premium to U.S. benchmark since 2015
- Discount on American oil is encouraging record crude exports
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Oil rallied to $80 a barrel in London for the first time since late 2014 amid mounting signs that global stockpiles are shrinking.
Brent crude futures climbed as much as 1.5 percent on Thursday as OPEC’s output curbs tightened surpluses around the world and the outlook for shipments from Venezuela and Iran worsened. The rally in New York fizzled, however, as record output from shale fields and a drilling ramp-up limited the scope for gains. The widening gap between the global benchmark and American prices encouraged unprecedented exports of U.S. oil.