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Weak dollar spurs Brent crude

Oil hits $71 a barrel for first time since 2014

Brent Oil field

Higher oil prices are good for the North Sea

Brent crude oil has hit $71 a barrel today for the first time since 2014 as the US dollar weakens and and OPEC curbs supplies.

The Organisation of Petroleum Exporting Countries and other producers, including Russia, agreed late last year to extend an accord to hold back crude output by 1.8m barrels a day till the end of 2018. An involuntary drop in Venezuela’s output in recent months has deepened the impact of those cuts.

Brent crude oil rose 0.34% at $71.28 a barrel on London’s Intercontinental Exchange.

US Treasury Secretary Steven Mnuchin said yesterday during the Davos summit that “a weaker dollar is good for trade,” boosting the price of oil and other dollar-denominated commodities and boosting US exports.

A price of $60 a barrel is generally seen as the trigger for investing in the North Sea, though anecdotally companies said to be finding it viable to operate at much lower prices as a result of technological improvements and leaner operations.

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