Shares of oil and gas companies rallied as oil futures topped $70 in London trade for the first time in more than three years. The gains came in the wake of inventory data earlier this week and ahead of U.S. President Donald Trump's decision to waive or reimpose sanctions on Iran this week, a decision that has implications for Iran's oil exports.
"The oil glut that many said would never go away is officially gone," said Phil Flynn, senior market analyst at Price Futures Group, in a note to clients. "For the first time since June of 2015 oil supplies are back in the average range and not above average. This is happening as U.S demand is above average, and that in part explains why the supply of oil continues to drain at the fastest pace in history."
--Rob Curran, [email protected]