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Oil price soars to highest level on Mideast woes

PTI London | Updated on April 19, 2018 Published on April 19, 2018

Oil surged today close to 3.5-year peaks on simmering Mideast tensions and keen US demand, while London stocks rose with drugmaker Shire boosted by a reported takeover move.

World oil prices extended yesterday’s gains on the back of data showing a drop in US stockpiles -- indicating improved demand -- and expectations that a Russia-OPEC output cap deal will be kept in place.

The market was also propelled after OPEC kingpin reportedly stated it wanted crude prices to top $ 80 a barrel as it prepares for a gigantic listing of part of its state oil company.

Tensions in the oil-rich Middle East also kept prices elevated.

“Saudi Arabia still calls the shots on global oil markets, and it is increasingly obvious the Saudis are comfortable with oil at $ 80 or more,” said Interactive Investor analyst Lee Wild.

“Add a drop in weekly US oil reserves to the mix and the only way for crude prices is up.” In early morning deals, oil surged to summits last seen in November 2014 before paring gains.

London Brent struck $ 74.44 a barrel and New York crude touched $ 69.27.

Published on April 19, 2018
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