Oil prices surged by more than $2 a barrel on Wednesday, driven by shrinking crude inventories in the United States. Brent crude futures climbed $2.71, or 3.2%, to $86.80 a barrel, while U.S. West Texas Intermediate crude gained $2.26, or 3.4%, to $81.95, according to livemint.com. The rise follows a decline in U.S. crude stockpiles by approximately 3.3 million barrels in the week ended July 24.
The American Petroleum Institute reported the drop in U.S. crude inventories, which contributed to the rebound in oil prices after a previous session's losses linked to a temporary pause in tensions between Washington and Tehran. Despite the crude drawdown, gasoline inventories increased by 918,000 barrels and distillate stocks rose by 355,000 barrels, reflecting mixed trends in petroleum product supplies, livemint.com noted.
This price movement underscores concerns over tightening crude supplies in the U.S., a key factor influencing global oil markets. The recent inventory data contrasts with earlier market expectations and highlights the volatility caused by geopolitical factors and supply-demand dynamics. Brent and WTI price gains follow a pattern seen in previous episodes where U.S. stock declines have prompted price recoveries, as documented by market analysts cited by livemint.com.
The American Petroleum Institute's inventory report for the week ending July 24 remains the latest concrete data point driving market activity, with Brent crude futures at $86.80 and WTI at $81.95 per barrel as of early Wednesday trading, according to livemint.com.