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| Oil prices rose for a fifth straight day on Wednesday, after data showed a larger-than-expected decline in US crude stockpiles as US refiners pulled in more crude inventories to boost activity and meet recovering demand. |
Brent crude futures for August delivery rose 40 cents, or 0.5 percent, to settle at $74.39 a barrel, the highest close since April 2019 and the fifth straight day of gains.
Meanwhile, U.S. West Texas Intermediate (WTI) crude futures for July delivery added 3 cents to close at 72.15 dollars a barrel, after briefly hitting a session peak of 72.99 dollars, their highest since October 2018.
U.S. crude inventories fell 7.4 million barrels in the week ended June 11, the U.S. Energy Information Administration (EIA) said, as refining utilization rose to 92.6 percent, the highest since January 2020, before the pandemic hit.
The draw in inventories was stronger than expected, also driven by exports as another signal of increasing demand worldwide.
"With refineries running at more than 16 million bpd and exports continuing to be strong, it will be difficult for inventories to avoid a consistent draw as we push into the peak of the summer driving season," said Matthew Smith, director of commodity research at ClipperData.
Brent has gained 44 percent this year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, and a recovery in demand.
OPEC+ has cut historic supply cuts last year, but is still holding millions of barrels of daily supply from the market.
Executives from a major oil trader said Tuesday they expect oil prices to remain above $70 and demand to return to pre-pandemic levels in the second half of 2022.
On Wednesday (16/6) the US Federal Reserve also advanced its projections for its first post-pandemic interest rate hike to 2023.
"The oil complex digested the Fed news fairly well in suggesting that some higher crude prices are likely ahead," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
At the same time, the prospect of a rise in Iran's oil exports seems less likely, analysts said.
Indirect talks between Tehran and Washington about resuming the 2015 nuclear deal resumed in Vienna on Saturday (19/6).