Oil Nears $70

Oil Nears $70
Oil Nears $70

Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of Covid-19 infections in India and Japan.
Brent crude rose 91 cents, or 1.3%, to $69.79 a barrel. US West Texas Intermediate crude rose 82 cents, or 1.3%, to $66.51 a barrel.
Both contracts hit the highest level since mid-March in intra-day trade, CNBC reported. "A return to $70 oil is edging closer to becoming reality," said Stephen Brennock of oil broker PVM.
"The jump in oil prices came amid expectations of strong demand as western economies reopen. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high," he said.
Crude prices were also supported by a large fall in US inventories.
The American Petroleum Institute industry group reported crude stockpiles fell by 7.7 million barrels in the week ended April 30, according to two market sources. That was more than triple the drawdown expected by analysts polled by Reuters. Gasoline stockpiles fell by 5.3 million barrels. 
The rise in oil prices to nearly two-month highs has been supported by Covid-19 vaccine rollouts in the United States and Europe.

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