January 24, 2018, 9:29 am
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Analysts warn oil markets may have overheated

SINGAPORE- Oil prices held near three-year highs on Thursday, supported by a surprise drop in US production and lower crude inventories, although analysts increasingly warned of signs that fuel markets have overheated.

US West Texas Intermediate (WTI) crude futures were at $63.53 a barrel, 4 cents below their last settlement but still close to a December 2014 high of $63.67 per barrel reached the previous day.

Brent crude futures were at $69.14 a barrel, 6 cents below their last finish. That was also close to the previous day’s high of $69.37 a barrel, which was the highest level since an intra-day spike in May 2015 and, before that, in December 2014.

Oil markets have generally been supported by a production cut led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia that started in January last year and is set to last through 2018.

More immediate price support came overnight from the United states, where crude inventories fell almost 5 million barrels in the week to January 5, to 419.5 million barrels. – Reuters 
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