Oil hits fresh 3.5-year high in Asia
|- Oil remains bid as US stockpiles dropped in the week ended April 13.
- The recent rally is fueled by geopolitical tensions and fears of supply disruptions.
Oil prices rose to their highest level since late 2014 in Asia as traders factored in a drop in the US oil inventories in the week ended April 13.
Brent oil rose to a 3.5-year high of $73.96 and was last seen trading at $73.76/barrel.On similar lines, WTI front-month contract hit a high of $68.95 before retreating slightly to $68.70.
US commercial oil inventories dropped by 1.1 million barrels in the week through April 13, according to the US Energy Information Administration (EIA). Meanwhile, gasoline stocks fell by 3 million barrels and distillate fuels, including diesel, declined by 3.1 million barrels.
Also, the involvement of Russia and Iran (two of the biggest oil producers) in the Syrian crisis and the fears of supply disruptions seem to have played a major role in boosting oil prices in recent weeks.
What's more, the rumors are doing the rounds that Saudi Arabia is hoping to push oil prices to $80, so the valuation of Saudi Aramco improves. Further, the OPEC output cuts deal compliance rate hit a new record high of 164 percent in March.
So, it appears, there is no stopping the oil rally, at least in the short-run.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.