Brent Crude was trading 0.54% up at $74.37.
Oil gained for a fifth day on Wednesday, climbing towards $75 a barrel to its highest since April 2019, supported by a recovery in demand from the pandemic and a drop in U.S Crude inventories.
The American Petroleum Institute reported U.S. crude inventories fell 8.5 million barrels, two market sources said, more than analysts forecast. [API/S] Official Energy Information Administration figures are out at 1430 GMT. [EIA/S]
Brent Crude was up 21 cents, or 0.3%, at $74.20 a barrel by 1000 GMT, and earlier reached $74.73, the highest since April 2019. U.S. crude gained 18 cents, or 0.3%, to $72.30 and hit $72.83, the highest since October 2018.
“Demand growth is outpacing supply and will continue to do so over the coming months,” said Stephen Brennock of oil broker PVM.
Brent has risen 44% this year, supported by supply cuts led by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and a demand recovery expected to gather pace in the second half.
Despite some easing of last year’s record output cuts made when the pandemic took hold, OPEC+ is still withholding millions of barrels of daily supply from the market.
“Even non-energy traders are placing bets that oil prices will continue to rise,” said Edward Moya, senior market analyst at brokerage OANDA.
Executives from major oil traders said on Tuesday they expected prices to remain above $70 and demand to return to pre-pandemic levels in the second half of 2022.
On the technical front, Brent Oil, RSI stood at 73.192, the current price is trading Above All the Moving Averages . So, a Buy trade can be executed with the following target and stop-loss:
TRADE SIGNAL- Brent Oil – Buy: 74.40, TARGET:- 84.40, STOP LOSS:- 69.40.