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Oil is closing in on $70 for first time in over 3 years

Apr 19, 2018, 18:57 IST

Markets Insider

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Oil continued its rally on Thursday, approaching $70 for the first time in more than three years.

West Texas Intermediate rose about 1% to $69.56 at session highs around 7 a.m. ET. It's currently up 0.63% at $69.18 a barrel. The last time it cracked $70 was in November 2014. Brent, the international benchmark, was trading at $74.14 at 8:51 a.m. ET.

Crude has been rallying this week amid rising supply concerns. On Wednesday, the US Energy Information Administration released a report showing oil inventories in the US fell by 1.1 million barrels last week to about 428 million barrels. The drawdown was much bigger than expected.

Elsewhere, Saudi Arabia has been hinting the OPEC could extend production caps into next year. The country - OPEC's biggest producer - is targeting a crude price of $80 or even $100, Reuters reported.

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