The price of oil increased to its highest level since late in the year 2014 which is a three year high after the data from the government of United States showed that crude stockpiles fell in the previous week and as the market was in a dilemma about the disruptions in the supply in the key fossil fuel producing nations. The session of the United States Intermediate crude futures on Wednesday ended up 1.95 dollars or about 2.9 percent at 68.47 dollars which is the best since 1st of December 2014. The contract hit an intraday high going back to the 2nd of December 2014. Brent crude oil futures, which are considered to be the international benchmark, also hit an intraday high going back to November 2014. The contract went up by 1.9 dollars or about 2.7 percent which ended the session with 73.48 dollars per barrel.
The settlement of Brent crude oil futures marked its best ending since the 26th of November 2014 just the day before OPEC refused to take any steps for stopping a decline in the price of oil which in turn sparked a sharp sell-off that ultimately sent down the price of oil to a 12-year low. Since that time OPEC has reversed its course where it reached a deal with the nation of Russia and other producers of oil for cutting down the output of oil by 1.8 million barrels per day starting from the month of January 2017. The deal that runs through the end of this year has almost reduced global oil stockpiles to their average of five years.
On Friday, a committee that keeps a notice of the adherence of the cuts met in Saudi Arabia and the wider group is set to meet in the month of June for determining whether the agreement should be adjusted or not. Some of the senior officials of Saudi Arabia are reported to be aiming at about 80 dollars per barrel of oil and could also argue to keep the production caps in place for the achievement of that particular goal. As per the reports of the Energy Information Administration of the United States, US commercial crude inventories fell by 1.1 million barrels in the previous week through the 13th of April 2018. The stockpiles of gasoline also fell by three million barrels while distillates fuels that includes diesel dropped by 3.1 million barrels.