Crude oil futures settle above $71 on Iran anxiety

Extending rally for yet another day, Crude oil futures edged higher on Wednesday, hitting three and a half year high, buoyed by expectations that the U.S. decision to pull out of the Iran nuclear deal and re-impose sanctions will disrupt the flow of crude in the Middle East.

The rally was also supported after a government report released on Wednesday revealed the first decline in U.S. crude supplies in three weeks. The Energy Information Administration (EIA) reported a draw of 2.2 million barrels in U.S. crude oil inventories. That is a much bigger drop in inventories than expected. Gasoline inventories also fell more than 2 million barrels.

Benchmark crude oil futures for June delivery jumped by $2.08 or 3 percent to settle at $71.14 a barrel on the New York Mercantile Exchange. July Brent crude gained $2.36 or 3.2 percent to settle at $77.21 a barrel on London’s Intercontinental Exchange.

Commodity MCX live Price