Crude oil prices edged higher on Thursday, nearing the $70 per barrel mark for the third time this week, fueled by growing optimism over tightening global supply and resilient demand. The benchmark West Texas Intermediate (WTI) rose 1.3% in early trading, maintaining its upward trajectory as traders bet on continued price recovery in the energy market.
The rally comes amid declining U.S. stockpiles and OPEC+ producers reaffirming their commitment to output cuts. Weekly data from the Energy Information Administration showed crude inventories falling by 3.7 million barrels, underscoring a supply squeeze that has buoyed prices. Meanwhile, analysts point to improved economic indicators in key markets such as China, where manufacturing activity rebounded, supporting demand for crude.
Despite the bullish sentiment, headwinds persist, with concerns about rising interest rates and their potential to dampen global economic growth. However, traders remain optimistic that tight supply dynamics will overshadow demand worries, keeping prices well-supported in the near term. The $70 threshold has become a key psychological level for the market, signaling confidence in oil’s recovery after a turbulent year.
