Oil prices touch $70 mark on low US inventories

Oil prices are firming up yet again due to lower US crude inventories and escalating Middle-East tensions. The Brent crude price touched $69.70 per barrel, which was one of the highest level since February this year. 

The prices have accelerated by 10 per cent in the previous two weeks due to weak US dollar and lower US crude inventories. Also, the rising tensions between Saudi Arabia and Iran further impacted the output. The production from Middle-East region has been already limited due to deal between OPEC. 

Also, the prices recorded the biggest one-day gain since November 2017 after the drop in the US crude inventories. The US inventories declined to 428 million barrels in the week ending March 16. 

However, crude prices are expected to remain volatile as the US has surpassed Saudi Arabia in crude production at 10.4 mn bpd, led by Russia at 11 mn bpd. Also, the rising crude output is undermining the OPEC deal on output cut to control the fall in prices. The deal will end in 2018.