Oil nears $70 buoyed by summer demand outlook & US inventories drop

The price of crude continued to rise for a third day on Wednesday amid reports of a sharp drop in US stockpiles and expectations of a summer surge in fuel demand.

Global benchmark Brent rose 1.23% to trade at $69.73 a barrel as of 13:21GMT. US West Texas Intermediate also climbed more than one percent to $66.48 per barrel, while US gasoline futures reached their highest since July 2018.

According to Stephen Brennock of oil broker PVM, “A return to $70 oil is edging closer to becoming reality.” He told Reuters that “The jump in oil prices came amid expectations of strong demand as western economies reopen. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high.”