Oil prices rose for a second session on Wednesday, thanks to signs of strong demand for fuel in Western economies, while prospects for a return of Iranian supplies dissipated as the US Secretary of State said sanctions against Tehran were unlikely to be lifted.
Brent crude futures rose 32 cents, or 0.4 percent, to $ 72.54 a barrel, after earlier touching $ 72.83, the highest level since May 20, 2019, and Brent increased by 1 percent on Tuesday.US West Texas Intermediate crude futures rose 31 cents, or 0.4 percent, to $70.36 a barrel, and had recorded $70.62, the highest level since October 17, 2018. Crude prices rose 1.2 percent on Tuesday.
On Tuesday, the US Energy Information Administration expected fuel consumption growth this year in the United States, the world’s largest oil consumer, to reach 1.49 million barrels per day, up from a previous forecast of 1.39 million barrels per day.
In another positive sign, data for the sector shows that US crude stocks fell last week, in line with analyst expectations according to a Reuters poll.
Two market sources said, citing data, that the American Petroleum Institute reported that crude stocks fell by 2.1 million barrels in the week ending on the fourth of June.
Inventories data from the US Energy Information Administration is due on Wednesday.