Oil rally drives brent toward $75 as market tightens, curbs ease

Oil rally drives brent toward $75 as market tightens, curbs ease

Oil extended a powerful rally, with global benchmark Brent closing in on $75 a barrel, after data pointed to a substantial draw in US crude stockpiles and top traders predicted further gains in prices.

Brent advanced 0.9%, while West Texas Intermediate climbed to the highest level since October 2018. The industry-funded American Petroleum Institute reported US crude inventories fell 8.54 million barrels last week. That would be the largest drop since January if the figures are confirmed by government data later Wednesday. Still, inventories of gasoline and distillates expanded.

Oil's rally has been reinvigorated this month as leading economies continue to reopen, aided by coronavirus vaccine programs. That's boosting worldwide energy demand just as the Organization of Petroleum Exporting Countries and its allies maintain a cautious approach to boosting supply. Executives from both Glencore and Vitol Group said this week they see further gains in oil.