Oil is closing in on $US70 for first time in more than three years
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Oil continued its rally on Thursday, approaching $US70 for the first time in more than three years.
West Texas Intermediate rose about 1 per cent to $US69.56 at session highs overnight.
At the time of writing it was at $68.13 a barrel.
The last time it cracked $US70 was November 2014.
>> Scroll down for a list of ASX oil juniors that stand to benefit from the rising prices.
Brent, the international benchmark, was trading at $US74.14 a short time ago.
Crude has been rallying this week amid rising supply concerns.
On Wednesday, the US Energy Information Administration released a report showing oil inventories in the US fell by 1.1 million barrels last week to about 428 million barrels. The drawdown was much bigger than expected.
Elsewhere, Saudi Arabia has been hinting the OPEC could extend production caps into next year. The country – OPEC’s biggest producer – is targeting a crude price of $US80 or even $US100, Reuters reported.
>> Here’s a list of ASX oil juniors that stand to benefit from the rising prices.