Oil Surges to Highest Level Since 2014

Investing.com – Oil prices surged on Thursday, as data showed that U.S. crude and gasoline stockpiles have fallen.

Both Brent and WTI were near their highest levels since November 2014. rose 0.39% to $71.77 a barrel by 4:46 AM ET (8:46 GMT), while futures, the benchmark for oil prices outside the U.S., was up 0.39% to $79.59 a barrel.

The price of oil was supported by data showing that , offsetting fears of a global demand slowdown. According to the latest weekly report from the U.S. Energy Information Administration, U.S. crude inventories fell by 1.4 million barrels in the week to May 11, compared with analyst expectations for a 763,000 barrel decrease.

Meanwhile the International Energy Agency for 2018 down from 1.5 million barrels per day (bpd) to 1.4 million pbd due to the expected increase in prices for the rest of the year.

Looming sanctions against OPEC-member Iran by the U.S. has contributed to rising oil prices and the market is expected to tighten for the rest of the year, the agency said on Wednesday.

Oil prices have jumped over 70% in the last year due to a rise in demand and restricted supply by the Organization of the Petroleum Exporting Countries (OPEC).

OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018. While the groups efforts to end a global supply glut have been successful, Saudi Arabia is pushing for the cuts to extend into 2019.

In other energy trading, gasoline futures increased 0.22% at $2.2575 a gallon, while rose 0.52% to $2.2809 a gallon. inched up 0.07% to $2.817 per million British thermal units.

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