Crude oil touches new highs

Business | 16 Jun 2021 4:23 pm

Crude oil extended its run of gains on Wednesday, climbing towards US$75 a barrel to its highest since April 2019, supported by a recovery in demand from the pandemic and a drop in U.S. crude inventories, Reuters reports.

The American Petroleum Institute reported U.S. crude inventories fell 8.5 million barrels, two market sources said, more than analysts forecast.

Official Energy Information Administration figures are out at 1430 GMT.

Brent crude was up 29 US cents, or 0.4 percent, at US$74.28 a barrel by 0815 GMT, and earlier reached US$74.73, the highest since April 2019.

U.S. crude gained 32 US cents, or 0.4 percent, to US$72.44 and hit US$72.83, the highest since October 2018.

"Demand growth is outpacing supply and will continue to do so over the coming months," said Stephen Brennock of oil broker PVM.

Brent has risen by 44 percent this year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and a demand recovery expected to gather pace in the second half.

 



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