Crude oil settles above $60 for first time since June 2015

U.S. crude oil closed above $60/bbl for the first time in two-and-a-half years, settling up 1% at $60.42 as a combination of supply disruptions this week and evidence of reduced crude inventories has helped push prices higher headed into 2018.

WTI prices were supported by data from the EIA late yesterday showing U.S. oil production fell last week to 9.75M bbl/day from 9.79M bbl/day the previous week.

Brent futures also rose, up 1.2% to $66.92/bbl after breaking through $67 earlier this week for the first time since May 2015.

Prices have rallied nearly 50% since mid-year on strong demand and compliance with OPEC production limits, a trend Andrew Lipow of Lipow Oil Associates thinks will continue into next year; he expects U.S. crude prices to rise to ~$63/bbl by year-end 2018, while Brent remains near $67 as U.S. oil exports rise to record levels.