2018.04.1900:32:00UTC+00Oil Rallies as Saudi Pushes for Higher Prices

Prices of oil continued to be near late 2014-highs reached in the prior session as U.S. crude stockpiles fell and as top exporter Saudi Arabia aims for prices of $80 to $100 per barrel by continuing to limit supplies.

Brent crude oil futures stood at $73.82 per barrel, up 32 cents or 0.5 percent from their last settlement. U.S. WTI crude futures traded up 28 cents or 0.4 percent at $68.75 per barrel.

On Wednesday, the international benchmark hit its highest level since November, 2014 at $73.93 per barrel. Meanwhile, U.S. WTI marked its strongest price since December 2014 at $68.91 per barrel.

Reuters reported during that day that top oil exporter Saudi Arabia would be pleased to see crude prices climbing to $80 or even $100 per barrel, which was perceived as an indication that Riyadh will seek no changes to an OPEC supply-cutting agreement that was introduced in 2017 to bolster prices.

Headed by Saudi Arabia, OPEC and a group of other producers including Russia began to limit output in 2017 to curb in oversupply that has weighed down prices since 2014.

Since the beginning of the voluntary restraint, crude inventories have been gradually falling from record levels toward long-term average levels.

Another factor supporting oil prices is an expectation that the U.S. will re-introduce sanctions against OPEC-member Iran, which could result in more supply reductions from the Middle East.

In the supply front, the U.S. Energy Information Administration reported on Wednesday that commercial stocks declined by 1.1 million barrels in the week to April 13, to 427.57 million barrels, which is near the five-year average level around 420 million barrels.