Oil traded near the highest close in more than two years as US government data showed stockpile declines for a seventh consecutive week and as unrest continued in Iran, OPEC’s third-biggest oil producer.
Futures were little changed in New York near $60 a barrel after easing 5 cents on Tuesday.
Inventories fell by around 5 million barrels last week, according to a survey included in an Energy Information Administration report.
Crude and condensate exports from Iran remain unaffected by the turmoil that has spread across the country, Bloomberg tanker tracking shows.
According to Moody’s Investors Services, prices will likely trade between $40 and $60 a barrel this year, impacted by rising US shale production, declining but still hearty worldwide supplies and eroding OPEC compliance, according to Moody’s Investors Service.
Daniel Hynes, analyst at Australia & New Zealand Banking Group in Sydney told Bloomberg: “There’s still upside to the price. The market is definitely getting a little more positive about supply and demand dynamics.”
He added: “It’s highly unlikely we’ll see any impact on output from the Iranian protests, but it does raise market awareness of rising geopolitical risks.”