NEW YORK (CNBC) - 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. Official Energy Information Administration figures are out at 1430 GMT.
Brent crude was up 24 cents, or 0.32%, at $74.23 a barrel by around 9:00 a.m. ET, and earlier reached $74.73, the highest since April 2019. U.S. crude gained 12 cents, or 0.17%, to $72.25 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.