On Wednesday, oil prices rose on signs of strong fuel demand in Europe, while the prospect of a near-term return to Iranian oil supplies faded as the US Secretary of State said that Iranian sanctions against Tehran were unlikely to be lifted.
Brent crude futures were up 15 cents, or 0.2%, at $75.37 a barrel at 0131 GMT and before rose to $72.58, the highest since May 20, 2019. Brent rose on Tuesday 1% for the day.
United States West Texas Intermediate crude futures has increased 20 cents, or 0.3%, to $70.25 a barrel after rising to as high as $70.42, the most since Oct. 17 2018, after much value. On Tuesday rates climbed 1.2% to $115,000 on the market.
The market is boosted by a solid outlook for fuel demand growth as travel curbs are lifted in Europe with more people getting vaccinated.
Recent traffic data suggests travellers are hitting the roads as restrictions ease, ANZ Research analyst stated in a note, pointing to TomTom data which shows traffic congestion in 15 European cities had hit its highest since the coronavirus pandemic began.
The market strength expected to be strong, the analysts of ANZ said.
On Tuesday, the U.S. Energy Information Administration forecast fuel consumption growth this year in the United States, the world's biggest oil user, would be 1.49 million barrels per day up from a previous forecast of 1.39 million bpd.
According to a Reuters poll, industry data showed U.S. crude oil inventories fell on Sunday according to analysts' expectations, in another positive sign.
The American Petroleum Institute reported that crude stocks obtained 2.1 million barrels in the week ended June 4, two market sources said, citing the data. Stockpile data from the United States Energy Information Administration is due on Wednesday at 1430 GMT.
In recent weeks, price gains had been capped as oil investors had been assuming that Iran's sanctions against western exports would increase and oil supplies would increase this year when Iran's talks with Western powers on a nuclear deal proceeded.
However, on Tuesday the Secretary of State Antony Blinken said that even if Iran and the United States returned to being in compliance with a nuclear deal, hundreds of U.S. sanctions on Tehran would remain.