Crude oil futures ended higher Thursday, amid signs of supply shortage in the market after recent data showed a drop in U.S. crude inventories.
U.S. sanctions on Iranian oil that begin in November this year and supply disruptions in Libya and Venezuela are also expected to significantly cut crude oil supplies in the market.
Crude oil futures for October delivery ended up $0.74, or 1.1%, at $70.25 a barrel on the New York Mercantile Exchange, the highest finish in over seven weeks.
On Wednesday, crude oil futures ended up $0.98, or 1.4%, at $69.51 a barrel.
According to the data released by the Energy Information Administration on Wednesday, U.S. crude inventories fell by 2.566 million barrels to 405.8 million barrels in the week ended August 24.
The report from EIA also showed imports fell by about 0.657 million barrels per day, while exports rose by 0.624 million barrels per day. Meanwhile, crude production was unchanged at 11 million barrels a day, the report showed.
The EIA report showed gasoline inventories to have fallen by 1.554 million barrels, and supplies of distillate to have dropped by 0.837 million barrels in the week.