Oil prices hit new high near $75 on demand rise, falling inventories

Oil extended its run of gains 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. [API/S] Official Energy Information Administration figures are out at 1430 GMT. [EIA/S]

Brent crude was up 29 cents, or 0.4%, at $74.28 a barrel by 0815 GMT, and earlier reached $74.73, the highest since April 2019. U.S. crude gained 32 cents, or 0.4%, to $72.44 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.