Crude prices are climbing as the supply/demand gap closes.
The EIA reported that nationwide inventories fell by 4.95 million barrels, the largest draw since the oil price crash in 2014 for this time of year.
Brent crude is hovering right below $70 with WTI about $63, and traders are optimistic. The reason for their optimism? Dwindling stockpiles of crude for eight consecutive weeks, continued OPEC cutbacks, and tensions in the Middle East.
“We’re seeing falling inventories and rising geopolitical risk and that signals higher oil prices,” said Rob Thummel, managing director at Tortoise Capital Advisors LLC, which handles $16 billion in energy-related assets.
Before the 2014 crash Brent crude was over $100 per barrel.
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