Oman Crude oil price breaches $70 mark

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The leap in oil combined with fears that sanctions on Russian Federation could hit supplies of other commodities to light a fire under the entire sector.

"Saudi Arabia wants higher oil prices and yes, probably for the IPO, but it isn't just that", an OPEC source said.

U.S. West Texas Intermediate (WTI) crude futures rose 71 cents to $69.18 a barrel.

Japan's Nikkei faded late in the day to end up 0.15 percent, but basic materials and utilities both climbed more than 2 percent.

Gasoline and distillate stocks also fell, and refinery usage has been at highs not seen for this time of year in 13 years, according to the U.S. Energy Information Administration.

Gasoline inventories also fell by 3 million barrels last week, according to the data.

"It's a bullish report with the across the board drawdowns in everything", said John Kilduff, founding partner at energy hedge fund Again Capital.

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The Congress had then demanded an impartial investigation into Loya's death. Shah was discharged by the successor judge.

"Overall the supply-demand equation is fairly balanced", said Anthony Scott, managing director at BTU Analytics in Denver. Total volume traded was about 21 percent above the 100-day average.

Crude futures were already higher ahead of the release after the American Petroleum Institute reported a 1-million-barrels drop on Tuesday afternoon.

The Organisation of the Petroleum Exporting Countries (OPEC) has not been secret about its desire to boost the price of oil by cutting production.

The meeting of the Joint Technical Committee (JTC) earlier on Thursday found that oil inventories in developed nations in March stood at 12 million barrels above the five-year average, one of the sources said.

The deal, which runs through the end of this year, has almost shrunk global oil stockpiles to their five-year average. According to analysts, OPEC (Saudi Arabia) and Russian Federation look determined to continue with the cuts at least until their official expiry date at the end of 2018, despite the fact that their official target-bring OECD oil stocks down to their five-year average-could be achieved any moment now.

Some senior Saudi officials are reportedly targeting $80 per barrel oil, and could argue for keeping the production caps in place to achieve that goal. The current instability and war situation in the Middle East Region is adversely affecting the oil prices.

The higher oil prices would help the cartel and allies to patch up their budgets that have been suffering from the low oil prices for three years now. Iran, which has raised output since the 2015 nuclear deal eased sanctions against its oil industry, faces the prospect of United States president Donald Trump abandoning the deal next month.