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Crude oil futures hit 7-year highs in intraday trading

Yahoo Finance's Jared Blikre discusses the rally in Brent and WTI crude oil after Permian oil production reached a record high in December.

Video transcript

- And welcome back to Yahoo Finance. Well, it has been a big day in the energy sector. Brent Oil touching its highest level since 2014, briefly topping $88 per barrel. WTI also rallied. OPEC sees strong demand ahead, according to its latest report. And rising tensions in the Persian Gulf also driving up prices. Here, with more and how crude settled, let's bring in our Yahoo Finance's Jared Blikre. Busy day.

JARED BLIKRE: Yes, it is. WTI Crude Futures for February settlement just closed at $85.43 a barrel. Still trading in the electronic market. And you can see the high for the day is $85.74. And guess what, in addition to Brent, this is also the highest that WTI has been since late 2014. So we're looking at seven-year highs right there. And you can see how does the intraday price action.

Want bring this back to a three-month look. And you can see, since early December, and this was the Omicron sell-off, the initial news right there, it has been up, up and away ever since. And despite the general market weakness, guess what, we have the energy sector largely in the green today.

And here, are we going to go to the YFi interactive heat map for this sector, showing gains for Exxon up over 1 and 1/2%. Royal Dutch Shell up nearly 2%. Occidental Petroleum up over 1 and 1/2% as well also want to note that. Permian Oil Production reached a record high in December that was 4.92 million barrels, the highest since March of 2020. That was in the midst of the COVID selloff when there were still pumping high.

So right now, if you were to scan OPEC, the only country that produces more oil than the Permian Basin, which is basically Texas and New Mexico, is Saudi Arabia. That doesn't include the OPEC Plus members like Russia. But nevertheless, a very interesting milestone to pass here guys.

- All right, Jared Blikre, thank you so much for that report.

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