SULAIMANI (ESTA) — Oil prices edged higher on Wednesday as falling stockpiles and a recovery in demand kept the main benchmarks at multi-year highs.
Brent crude was gained 50 cents at $74.49 a barrel by 0645 GMT, the highest since April 2019. U.S. crude was up 46 cents at $72.58 per barrel, the highest since 2018.
“Even non-energy traders are placing bets that oil prices will continue to rise,” Reuters quoted senior market analyst at OANDA Edward Moya as saying.
“Everyone is turning overly bullish with crude prices. The crude demand outlook is very robust as recoveries across the U.S., Europe and Asia, will have demand return to pre-COVID levels in the second half of next year,” Moya added.
U.S. oil inventories dropped by 8.5 million barrels in the week ended June 11, Reuters cited two market sources as saying, citing American Petroleum Institute figures.
Vitol Chief Executive Russel Hardy said oil is likely to trade in a range between $70 and $80 per barrel for the rest of this year on the expectation that OPEC+ will retain output restraints, according to Reuters.
