Oil traded near $71 a barrel as rising stockpiles and signs of slower demand growth countered concerns Iranian supplies will soon be curbed by sanctions.
As such, traders should keep an eye out for exactly what European and Asian allies do following the imposition of sanctions from the USA, as this will greatly impact quite how much oil is taken off the market.
Brent crude for July delivery closed at 79.30 dollars a barrel on the London ICE Futures Exchange. Prices haven't see levels this high since November 2014. USA light crude was 60 cents higher at $71.56 a barrel, also close to its highest since November 2014.
Thursday's gains came as European companies pull back from Iran.
Considering the fact that India is one of the highest importers of crude oil in the world, the prediction is a huge concern.
Concerns that U.S. sanctions on Tehran are likely to restrict crude exports from major oil producer Iran have sustained high oil prices.
Goldman Sachs, though, said even with a slowdown in demand and soaring US output, global oil markets would remain tight. They are usually marked by production that's in excess of demand, just as we witnessed a few years ago with the boom of United States shale oil and Saudi Arabia's response.
North Korea Starts to Dismantle Punggye-ri Nuclear Test Site
The reporters will then be transported by a chartered train to the nuclear test site in Punggye-ri. It will mark the first summit between a sitting U.S. president and a North Korean leader.
"The ghost of the 10-year Treasury yield has returned to spook markets again, with equities failing to make much progress as attention fixates on the key global benchmark", Chris Beauchamp, chief market analyst at IG trading group, said Thursday.
"Surprisingly, markets remain complacent" Jeff Currie, the global head of commodities, said in a note on Wednesday.
The economic collapse of Venezuela, also a major oil producing nation, has all but snuffed out its domestic oil production, in another blow to oil supplies. Presidential elections will be held there on Sunday.
Driven by increase in price of crude oil, liter of gasoline has increased amount this week by 1.24%, up to 1.302 euros.
According to the analysts' estimates, global crude oil output would need to grow by 5.7 million barrels a day by 2020 to meet the surge in demand for distillates.
"Supply concerns are top of mind after the USA left the Iran nuclear deal", said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd.in Zurich.
June gold on COMEX was nevertheless slipping 0.17% lower to $1,289.40/oz. Steady refining margins and backlog cargoes to some independent refiners contributed to the record import volumes. Analysts surveyed by S&P Global Platts had forecast a climb of 104 billion cubic feet and on average over the last five years for the same week, inventories rose by 67 billion cubic feet.