Oil bounces back to multi-year highs ahead of US inventories data

Oil prices turned higher on Tuesday, as the US crude hit a 3-year high and Brent hit a 2-year high, ahead of the release of US inventories data.

US crude rose 1.1% to the highest since October 2018 at $71.934 a barrel, after opening at $71.15, and hit a high at $71.52, and Brent crude rose 1.1% to the highest since April 2019 at $73.76 a barrel, after opening at $72.98, and hit a low at $72.82.

The US crude gained 0.5% yesterday, and hit a 3-year high at $71.76, in the second straight daily gain, and Brent crude rose 0.7% to the highest since April 2019 at $73.62.

These gains came thanks to a strong global demand outlook during the second half of 2021 and growing odds for a market supply deficit.

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, amid the US Energy Information Administration will release the official data on Wednesday.

A new round of the indirect talks between the US and Iran has started on Saturday, along with other parties on the 2015 Tehran nuclear agreement, and the European Union envoy described the talks as intensive.

Energy experts projected that Iran might add between 500,000 to 1.5 million barrels per day of oil once the US sanctions get lifted.