Posted on: Thursday, June 24, 2021 – 12:35 PM | Last update: Thursday, June 24, 2021 – 12:35 PM
The black gold benefited from expectations of strong fuel demand, as well as doubts about the future of the 2015 Iran nuclear deal, which could end US sanctions on Iran’s oil exports.
And press reports indicated that the Organization of Petroleum Exporting Countries and its non-OPEC allies discussed increasing oil production by about 500,000 barrels per day, starting from next August.
In the morning trading, the price of Brent crude futures, for August delivery, rose by 0.4%, to reach $75.47 a barrel.
The price of US West Texas Intermediate crude, for August delivery, also rose by more than 0.4%, to record $73.39 a barrel.
Both the benchmark and US crudes rose to their highest levels since October 1, 2018, on Wednesday.
Oil’s gains came after a larger-than-expected drawdown in US inventories of oil and gasoline, which underscores the outlook for strong fuel demand.
According to a report by the US Energy Information Administration, US oil stocks fell by 7.6 million barrels in the week ending on June 18, to record 459.1 million barrels, the lowest level since March 2020.
This decline in US oil inventories was greater than analysts’ expectations of 6.3 million barrels.
US gasoline inventories also witnessed a decline of 2.9 million barrels, compared to expectations that were indicating an increase of 1.3 million barrels.