Oil climbs higher as falling inventories outweigh Iran’s progress
(Bloomberg) – Oil edged higher in early Asian trading after a surprise drop in inventories helped the demand outlook, outweighing the prospect of a return to official oil exports from Iran.
Futures in New York rose above $90 a barrel after rising 0.3% on Wednesday. U.S. crude inventories fell about 4.8 million barrels last week, government data showed, compared with an increase expected in a Bloomberg survey. Other gains were capped by a flurry of diplomacy ahead of the resumption of Iranian nuclear talks in Vienna, suggesting the sides are trying to close in on a long-sought deal that could pave the way for more supplies.
Oil has rallied over the past seven weeks to its highest level since 2014, putting $100 worth of crude within reach and raising concerns about inflation. OPEC+ struggled to meet its targeted production pledges as economies rebounded rapidly from the pandemic, leading to a significant tightening in the market.
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Crude inventories at the key Cushing storage facility fell for the fifth week to the lowest level since November, according to data from the Energy Information Administration. The four-week average of petroleum products supplied – an indicator of demand – hit a record high last week.
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