Oil prices soared to their highest level since 2018 after data readings showed a decline in U.S. crude oil stocks, signaling a recovery in continued rising demand.
The American Petroleum Institute (API) reported that U.S. crude oil supplies fell by 8.5 million barrels last week, much lower than the decline recorded in the previous week of 2.1 million barrels.
Moreover, the API report also showed that petroleum inventories increased by about 2.9 million barrels last week, and distillery stocks rose by about 2 million barrels.
U.S. WTI crude traded higher at $ 72.69 a barrel after touching its highest level since October 2018, at $ 72.12 a barrel with a 1.8%increase.
Meanwhile, Brent crude traded at $ 74.62 a barrel, having reached its highest level since April 2019 at $ 74.46 a barrel, up 1.6%.
In addition, the strengthening of prices was also supported by expectations from the world's largest oil traders that demand would recover faster in the second half of 2021.
In a report on Tuesday, these traders saw that oil prices are above $ 70 a barrel with demand expected to return to pre-pandemic levels in the second half of 2022.
