Oil prices rose 2% on Wednesday, as U.S. government data showed a larger-than-expected drawdown in crude and fuel inventories, although investors continued to monitor growing concerns about a slowing U.S. economy and the impact of tariffs on global economic growth.
Brent crude futures rose 1.9%, to $70.89 a barrel, while U.S. West Texas Intermediate (WTI) futures rose or 2.2% to $67.70 a barrel.
Latest Oil Prices
WTI Crude $67.69 +2.17%
Brent Crude $71.00 +2.07%
Murban Crude $71.78 +1.86%
Louisiana Light $70.27 +0.16%
Bonny Light $78.62 -2.84%
Opec Basket $72.14 -0.82%
Mars US $73.22 -1.56%
Gasoline $2.151 +2.19%
Natural Gas $4.044 -9.18%
U.S. government data on Wednesday showed that U.S. crude inventories rose by 1.4 million barrels last week, 2 million barrels less than expected.
U.S. gasoline inventories fell by 5.7 million barrels, compared to expectations for a 1.9 million-barrel draw, while distillate stocks also fell by more than expected.
“This week, oil prices were lower than expected, and gasoline and diesel drawdowns were larger than expected,” said Josh Young, chief investment officer at Bison Interests.
“This indicates strong demand, and could lead to higher oil prices as a result.”
In recent days, crude oil futures have been supported by a weaker US dollar and the US Energy Information Administration’s reversal of its previous forecast of a large oil supply surplus this year, according to Giovanni Staunovo, an analyst at UBS.
The dollar struggled to recover from a five-month low against other major currencies on Wednesday as traders digested the trade tariffs between the US and the European Union and the prospect of a ceasefire between Russia and Ukraine.
The dollar index, which fell 0.5% to a 2025 low on Tuesday, helped boost oil prices by making crude less expensive for buyers holding other currencies. However, signs of slowing inflation gave investors some comfort after US consumer prices rose less than expected in February.
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