Petroleum prices rose on Thursday to their highest levels since May 2015, supported by unrest in Iran that has raised concerns about supply risks, a demand boost due to cold weather in the United States and output cuts led by members of the Organization of the Petroleum Exporting Countries.
Information released Thursday by the U.S. Energy Information showed commercial crude stockpiles fell by 7.4 million barrels in the week through Dec. 29. S&P Global Platts had projected that crude in U.S. storage would fall by 5.7 million barrels.
Meanwhile, gasoline inventories rose by 4.8 million barrels and distillate fuel stocks jumped by 8.9 million barrels.
Brent crude, the international benchmark, was down 10 cents U.S. at $67.74 a barrel late Thursday morning. The contract earlier hit a high of $68.27 U.S. going back to May 2015.
U.S. crude rose 16 cents to $61.79 U.S. and also touched the highest since May 2015.
OPEC, supported by Russia and other non-members, began to hammer out a deal to cut supplies again in 2016, aiming to lift prices by removing a glut built up in the previous two years.
Their cuts started a year ago and compliance has been high, aided by involuntary output declines in Venezuela, where the economy is collapsing, plus unrest in Nigeria and Libya. Producers have decided to extend the deal until the end of 2018.
OPEC's cuts are helping reduce global inventories.
EIA numbers also said total weekly U.S. production jumped by 28,000 barrels a day to nearly 9.8 million barrels a day.
