Oil Prices Surge as US Crude Inventories Plummet Amid Ongoing Tensions
Oil prices rebounded by over $2 a barrel on Wednesday as US crude inventories shrunk for the week ended July 24. Brent futures rose by 3.2% to $86.80 a barrel, while West Texas Intermediate (WTI) crude climbed 3.4% to $81.95.
The US Energy Information Administration is set to release official inventory data later on Wednesday, but market sources already pointed out that US crude inventories fell by about 3.3 million barrels in the week ended July 24. Gasoline and distillate inventories also saw gains of 918,000 barrels and 355,000 barrels respectively.
The price rebound comes after oil prices plummeted by around 5% on Tuesday to a two-week low due to hopes that efforts to end the US-Iran conflict would resume after a pause in hostilities. However, US President Donald Trump stated there were 'good talks' with Iran but threatened more strikes if negotiations broke down.
OPEC+ is also expected to halt oil output increases for three months starting in October, according to sources. This move could further support prices amid the ongoing tensions and supply disruptions.