Oil barrel reaches almost $75

SARAJEVO, (Patria) - Oil prices rose on Wednesday in international markets towards $75 per barrel, ahead of a report expected to show a larger-than-expected drop in US inventories.

In London, the price rose by 23 cents from the previous close to $74.71. In the US market, it rose by 33 cents to $71.98, reports SEEbiz.

US crude oil inventories fell by 4.7 million barrels, above analysts' estimates, Reuters learned from two market sources citing data from the American Petroleum Institute.

Official US government data will be released later.

Oil prices have risen 44 percent this year, supported by demand recovery and supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+.

OPEC+ has agreed to increase supply by 400,000 barrels per day from August and further reduce last year's record cuts, but some analysts believe this will not be enough, as they expect demand to return this year.        

The increasing number of coronavirus cases worldwide, despite vaccination programs, is limiting growth and continues to worry the market.

In addition to the US government's inventory report, investors' focus will also be on the statement from the meeting on the policy of the US central bank, the Fed.

OPEC announced that the price of a barrel of its member countries' reference basket was $73.62 on Tuesday, an increase of 94 cents from the previous business day.