Oil prices rallied significantly on Wednesday (March 13) in response to a notable decrease in crude oil and gasoline stocks in the United States. The decline in stockpiles signaled robust demand for U.S. oil, while geopolitical tensions in Ukraine further supported market sentiment.
WTI crude futures surged by $2.16, or 2.8%, to settle at $79.72 per barrel, while BRENT crude futures climbed by $2.11, or 2.6%, closing at $84.03 per barrel. This marks the highest level for BRENT crude since November 6, 2023.
The surge in oil prices followed the release of data by the US Energy Information Administration (EIA), revealing a decline of 1.5 million barrels in US crude oil stocks for the previous week. This starkly contrasted analysts’ expectations of a 900,000 barrel increase. Gasoline stocks also saw a substantial decrease of 5.6 million barrels, surpassing analysts’ projections of a mere 1.9 million barrel drop.
Furthermore, EIA data indicated a decline of 220,000 barrels in crude stocks at Cushing, Oklahoma, a crucial delivery point for U.S. crude futures.
Despite these declines, refined oil stocks, including heating oil and diesel fuel, saw an unexpected increase of 888,000 barrels, contrary to analysts’ forecast of a 150,000 barrel decrease.
Supporting the upward momentum in oil prices were reports of Ukraine launching drones to target Rosneft’s oil refinery in Russia. Situated in the Ryazan region southeast of Moscow, the refinery boasts an annual oil production capacity of 17.1 million tons.
Investors remained vigilant amid escalating tensions between Russia and Ukraine, with Russian President Vladimir Putin’s recent statements suggesting the country’s readiness for nuclear conflict. These developments continue to drive uncertainty in global markets, prompting investors to closely monitor geopolitical dynamics for potential impact on oil prices.
The Spot Market is Open
Thursday, March 14, 2024
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 07.15 | 79.69 | -0.03 | -0.04% |