Oil Rises on Flaring Geopolitical Risks and Shrinking Stockpiles - Bloomberg:
"Flaring geopolitical tensions in the Middle East coupled with expectations for a decline in U.S. stockpiles are boosting oil to trade near $70 a barrel.
Futures in New York climbed as much as 1 percent, set for the highest close since November 2014. A measure of oil volatility rose the most in two weeks as the conflict between Saudi Arabia and Iran-backed Houthis in Yemen worsened, raising concerns over supply disruptions in the energy-rich Mideast region. Expectations for a drop in U.S. crude inventories added to the gains, with analysts forecasting a second weekly decline.
Oil has rallied this month as the Organization of Petroleum Exporting Countries and its allies concluded that they have all but wiped out a global crude surplus, and Iran signaled the group can end cuts if prices rise more. Still, with production in the U.S. continuing to reach record levels, investors are wary that expanding output from shale producers could thwart OPEC’s efforts to reduce a global glut."
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