Oil prices rose in the European market on Wednesday to extend gains for the second day in a row, with US crude trading above $70 a barrel for the first time in three years, and Brent crude hitting a two-year high, after a new drop in US inventories, according to preliminary data by the American Petroleum Institute. Dealers official data later today within the weekly report of the US Energy Agency, and prices are also supported by hopes for fuel demand in Europe after the lifting of travel restrictions, in addition to statements by the US Secretary of State about the application of economic sanctions on Iran.
US crude rose by about 0.9% to the level of $ 70.60, the highest since October 2018, from the opening level at $ 70.00, and recorded the lowest level at $ 69.98, and Brent crude rose more than 0.9% to the level of $ 72.80 a barrel, the highest since May 2019 From the opening level at $72.13, and the lowest level at $72.13.
When settling Tuesday, US crude gained 1.1%, and Brent crude rose 0.9%, the sixth gain in the past seven days, following the statements of US Secretary of State, “Anthony Blinken.”
In preliminary data, the American Petroleum Institute announced yesterday that commercial stocks in the country decreased by about 2.1 million barrels during the week ending June 4, in the third consecutive weekly decline, and experts’ expectations indicated a decrease of about 3.5 million barrels.
According to these data, total commercial stocks in the United States decreased to about 481.3 million barrels, which is the lowest level since the week ending on February 19, in a positive sign of withdrawal levels in the largest consumer of fuel in the world.
Later today, traders are awaiting official data on commercial stocks and production levels, within the weekly report of the US Energy Agency, and expectations indicate a decline in stocks by about 3.3 million barrels.
As for the US production, it fell by about 200,000 barrels last week, bringing the total production down to 10.8 million barrels, which is the lowest level since last February, and the United States is still the largest oil producer in the world.
Oil prices also support the future outlook on fuel demand levels in Europe, especially after the lifting of travel restrictions in the old continent after more people received vaccinations against the Corona virus.
Some data showed that traffic congestion in 15 major European cities had reached its highest levels since the start of the coronavirus pandemic in March 2020.
US Secretary of State Anthony Blinken said on Tuesday that even if Iran and the United States returned to compliance with the nuclear deal, hundreds of US sanctions against Tehran would still apply.