Prices for petroleum gained for a fifth day on Wednesday, climbing towards $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.
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 were due for just before noon EDT.
Brent crude was up 24 cents, or 0.32%, at $74.23 U.S. a barrel early Wednesday morning, and earlier reached $74.73, the highest since April 2019. U.S. crude gained 12 cents, or 0.17%, to $72.25 and hit $72.83, the highest since October 2018.
Brent has risen 44% 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.
Despite some easing of last year’s record output cuts made when the pandemic took hold, OPEC+ is still withholding millions of barrels of daily supply from the market.
Executives from major oil traders said on Tuesday they expected prices to remain above $70 and demand to return to pre-pandemic levels in the second half of 2022.
