Oil prices continued to rise on Thursday, buoyed by growing concerns over potential supply disruptions, a larger-than-expected decline in U.S. crude inventories, and an improving outlook for global demand.
Brent crude futures rose by 23 cents, or 0.3%, to $82.26 per barrel by 07:31 GMT. This follows a 2.6% increase in the previous session, reaching the highest levels since July 26, 2024. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures climbed 28 cents, or 0.4%, to $80.32 per barrel, after gaining 3.3% on Wednesday, marking its highest point since July 19, 2024.
The upward movement in oil prices was largely driven by a report from the U.S. Energy Information Administration (EIA), which revealed a significant drop in crude oil stocks last week. U.S. crude inventories fell by 2 million barrels, the lowest level since April 2022, as exports surged and imports decreased. This decline was more substantial than the 992,000-barrel drop analysts had predicted in a Reuters poll.
The U.S. inventory draw has compounded concerns over a tightening global supply, particularly after the U.S. imposed expanded sanctions on Russian oil producers and tankers. These sanctions have led to Russia’s major customers scrambling to find alternative sources, pushing shipping rates higher as the market adjusts.
In addition to supply disruptions, analysts are forecasting a potential pickup in global demand, particularly driven by festivals and increased consumption in India and China. This combination of supply constraints and growing demand expectations has further supported oil price gains.
As markets continue to monitor geopolitical developments and demand trends, oil prices are expected to remain volatile in the coming weeks.
