Oil prices rose on Wednesday, thanks to indications of strong demand for fuel in Western economies, while prospects for the return of Iranian crude supplies to the market faded.
Brent crude futures rose 0.4% to $ 72.54 a barrel, by 06:40 GMT, after earlier touching $ 72.83, the highest level since May 20, 2019. “Brent” had increased by one percent on Tuesday .
Meanwhile, US West Texas Intermediate crude futures rose 0.4% to $70.36 a barrel, and had recorded $70.62, the highest level since October 17, 2018. Crude prices rose 1.2 percent on Tuesday.
“It appears that the improved demand outlook is boosting crude oil prices, as the successful introduction of the vaccine and the summer travel season in the United States and Europe continue to support fuel demand,” said Margaret Yang, an expert at the “Daily Fix”, a Singapore-based institution.
On Tuesday, the US Energy Information Administration expected fuel consumption growth this year in the United States, the world’s largest oil consumer, to reach 1.49 million barrels per day, up from a previous forecast of 1.39 million barrels per day.
In another positive sign, data for the sector showed that US crude stocks fell last week, in line with analyst expectations.
Two market sources, citing data, said that the American Petroleum Institute reported that crude stocks fell by 2.1 million barrels in the week ending June 4, 2021.