U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon
Oil prices continue to trend higher.

The oil price gusher continues.

U.S. crude futures hit the highest levels in more than three-and-a-half years Tuesday, sending gas prices on a faster pace towards the $3 a gallon mark just days before the start of the traditional summer driving season.

Global oil prices have been on a seemingly relentless march so far this year as investors re-set expectations for supply from key producers amid threats of U.S. sanctions linked to Iran’s alleged violations of a previous nuclear treaty and a disputed Presidential election in Venezuela. Collectively, the sanctions could take a further 250,000 to 500,000 barrels of crude from the market each day, pushing prices even high amid a broader OPEC agreement, first signed in December 2016, that has trimmed output by 1.8 million barrels each day until at least the end of the year.

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West Texas Intermediate crude futures for June delivery were marked 37 cents higher from their Monday closing levels in New York and changing hands at $72.72 per barrel, the highest since November 2014, extending its year-to-date gain to 20.35%. U.S. gasoline prices have reacted in kind, rising from $2.50 a gallon in late February to a national average of $2.94 a gallon, according to gasbuddy.com, also the highest since November 2014.

Brent crude prices for July delivery, the global benchmark, were seen 60 cents higher at $79.82 per barrel in early European trading.

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