- Oil remains bid as US stockpiles dropped in the week ended April 13.
- The recent rally is fueled by geopolitical tensions and fears of supply disruptions.
Oil prices rose to their highest level since late 2014 in Asia as traders factored in a drop in the US oil inventories in the week ended April 13.
Brent oil rose to a 3.5-year high of $73.96 and was last seen trading at $73.76/barrel.On similar lines, WTI front-month contract hit a high of $68.95 before retreating slightly to $68.70.
US commercial oil inventories dropped by 1.1 million barrels in the week through April 13, according to the US Energy Information Administration (EIA). Meanwhile, gasoline stocks fell by 3 million barrels and distillate fuels, including diesel, declined by 3.1 million barrels.
Also, the involvement of Russia and Iran (two of the biggest oil producers) in the Syrian crisis and the fears of supply disruptions seem to have played a major role in boosting oil prices in recent weeks.
What's more, the rumors are doing the rounds that Saudi Arabia is hoping to push oil prices to $80, so the valuation of Saudi Aramco improves. Further, the OPEC output cuts deal compliance rate hit a new record high of 164 percent in March.
So, it appears, there is no stopping the oil rally, at least in the short-run.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD extends daily rally toward 1.0500 after US PMI data
EUR/USD preserves its bullish momentum and advances toward 1.0500 in the American session on Monday. The disappointing ISM Manufacturing PMI seems to be weighing on the US Dollar and helping the pair push higher.

GBP/USD remains bid and challenges the 2025 high past 1.2700
Further upside impulse lifts GBP/USD back above the 1.2700 barrier, trading at shouting distance from YTD highs on the back of the intense move lower in the US Dollar.

Gold battling to recover the $2,900 mark
Gold continues to pull away from the multi-week low it set near $2,830 on Friday and trades above $2,880 in the second half of the day on Monday. The uncertainty surrounding the Trump administration's trade policy and retreating US yields after weak PMI data support XAU/USD.

Bitcoin corrects after sharp recovery during the weekend
Bitcoin price corrects and trades slightly down near $92,000 at the time of writing on Monday after rallying nearly 10% the previous day. Despite the recovery during the weekend, investor sentiment remains weak as US spot ETFs recorded a $2.39 net outflow last week, signaling institutional demand weakness.

Seven fundamentals for the week: Angst rises ahead of tariff deadline and full buildup to Nonfarm Payrolls Premium
A reality show in the White House – the world is still digesting the dressing down of Ukraine's President Volodymyr Zelenskyy in the White House, but markets have to focus on other actions of US President Donald Trump: tariffs. The dramas come in a week of top-tier data. It is time to fasten your seatbelts.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.