Oil Hits More Than Two-Year High Thanks to US Inventories

Oil topped $75 a barrel on Wednesday, hitting its highest since late 2018 after an industry report on crude inventories in the United States bolstered views of tight supplies in the market as travel grew in Europe and North America.

Two market sources told Reuters that the American Petroleum Institute reported that crude stocks fell by more than expected 7.2 million barrels. Official inventory numbers from the US Energy Information Administration are due by 14:30 GMT.

Brent crude rose 81 cents, or 1.1%, to $75.62 a barrel, after touching its highest level since October 2018 at $75.64. The price of US West Texas Intermediate crude rose 49 cents, or 0.7%, to $ 73.34 a barrel, approaching its highest level since October 2018.

The price of Brent has risen more than 45% since the beginning of the year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and with growing demand thanks to the easing of restrictions to limit the spread of the Coronavirus. some industry executives are talking about crude returning to $100 a barrel.

OPEC and its allies, the group is known as OPEC+, will meet on July 1. Two sources in OPEC+ said on Tuesday that the group is looking at further easing the record production cut applied since last year, starting in August, but no decision has been taken on the specific volumes.