Brent crude oil flirts with $60 a barrel

Brent crude has made another run at $60 a barrel on Friday, a key level oil has not traded above in more than two years.

The international oil marker rallied to a high of $59.98 a barrel in afternoon trading in London, as the dollar pulled back from a three-month peak.

Traders said the oil moves on Friday were primarily driven by currency markets, with the dollar whipsawed by a report that US President Donald Trump is leaning towards Jerome Powell as the next chairman of the US Federal Reserve.

Brent has already rallied by more than 30 per cent since June, with markets finally appearing to tighten after a three-year slump on demand robust and Opec’s output cuts.

Opec and Russia are expected to extend their 1.8m barrel a day output cut when they meet next month in Vienna, with both Saudi Arabia and Russia backing extending the curbs until late next year.

The $60-a-barrel mark has proven a tough line of resistance for Brent, however, with traders worried a move through the psychological level could trigger further investment and drilling from the US shale industry.

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