Oil Prices Soar as Crude Inventories Plummet Amid Escalating Tensions
The Energy Information Administration's weekly oil inventory data showed a significant decline in crude oil stocks. According to the report, crude oil inventories fell by -7.167 million barrels, far exceeding estimates of -1.272 million barrels.
The large drop in crude oil inventories comes at a time when tensions in the Middle East are escalating, fueling concerns over potential supply disruptions and driving up prices. President Trump's vow to 'hit Iran hard' has added to geopolitical risk, contributing to the surge in WTI crude prices.
Crude oil prices have risen sharply, with WTI futures reaching a new high of $85.20, up nearly 7.4% on the day. This price increase is significant, as it comes just one day after prices fell to $77.88, where buyers emerged at a key swing support level dating back to July 17.