And futures contracts for Texas Intermediate crude in New York rose 0.5% above $ 70 a barrel, while Brent rose by the same percentage, exceeding $ 72 a barrel.
The American Petroleum Institute reported that crude stocks fell by 2.11 million barrels last week, according to people familiar with the data. Oil is also supported by a weak dollar, while the Middle East crude market is showing signs of strength.
The strong recovery has been underpinned by higher demand in the US, China and Europe, and there are signs that the pace of the resurgence of Covid-19 in Asia may be slowing.
The US State Department has also eased travel warnings for countries around the world, which could pave the way for more flights.
On the other hand, progress is being made in reviving the nuclear deal with Iran, according to the United States, which has asked Tehran to return full inspections by the International Atomic Energy Agency. Renewing the deal could ease US sanctions and increase Iranian crude oil flows to global markets.
The American Petroleum Institute said US gasoline stocks rose by 2.41 million barrels last week, while distillates – a category that includes diesel – increased by 3.75 million barrels. If government data expected to be released on Wednesday confirms a nationwide drop in crude oil inventories, it will be the third weekly drop.
In the meantime, there are some indications that the deadly wave of the virus in India may be abating. The rate of new infections has slowed, while the country’s oil refineries are taking advantage of weak demand to conduct maintenance in anticipation of a recovery in fuel consumption in the coming months.