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Oil jumps 3% supported by falling US stocks and Saudi Arabia’s desire for higher prices

UNITED STATES (OBSERVATORY) –¬†Oil prices surged nearly 3 percent on Wednesday, supported by a fall in US crude inventories, and sources said Saudi Arabia wanted to see crude near $ 100 a barrel.

 

Saudi Arabia, the world’s largest exporter of crude, would be happy to see the oil price rise to $ 80 or even $ 100 a barrel, Saudi Arabia’s top oil exporter said, hinting that Riyadh would not seek any changes in the deal to cut supplies, Affordable.

Global Brent crude ended the session high with $ 1.90, or 2.7 percent, to settle at $ 73.48 a barrel, while US WTI crude advanced 1.95 dollars, or 2.9 percent, to $ 68.47 a barrel.

These are the highest levels of benchmark since late December 2014.

Oil prices were supported by a larger-than-expected drop in US crude and fuel stocks last week, data from the US Energy Information Administration showed.

Oil inventories fell 1.1 million barrels as a result of a 1.3 million barrel decline in net crude imports.

The oil market has also been supported by expectations that OPEC production cuts will continue. The organization and other major producers, including Russia, have been cutting output by 1.8 million bpd since January 2017. They have pledged to keep cutting until the end of this year.

Oil is bolstered by investor belief that tensions in the Middle East could lead to supply disruptions, as well as falling production in a country hit by an economic crisis.