Oil prices rose on Wednesday, while the price of Brent crude rose for the fifth consecutive session, as sentiment improved on the back of falling inventories and a recovery in demand after the Corona virus pandemic.
Brent crude rose 0.6 percent to $74.46 a barrel, by 07:00 GMT, the highest level since April 2019.
US crude also rose 0.6 percent to $72.54 a barrel, the highest level since November 2018.
“Even non-energy traders are betting that oil prices will continue to rise,” said Edward Moya, chief market analyst at OANDA.
Moya added: “Everyone’s expectations turn excessively to the rise in oil prices. The prospects for demand for crude are very strong, as with the recovery in America, Europe and Asia, demand will return to pre-Covid-19 levels in the second half of next year.”
Two market sources, citing data from the American Petroleum Institute, said on Tuesday that US oil stocks fell by 8.5 million barrels in the week ending June 11, 2021.
Analysts polled by “Reuters” agency had indicated that crude stocks are expected to decline for the fourth consecutive week by 3.3 million barrels.