Oil rises as US inventory declines heighten supply concerns

(Reuters) – Oil prices rose for a second day on Thursday after a larger-than-expected decline in U.S. crude oil stockpiles added to supply concerns stoked by U.S. sanctions against Russian energy trade.

Brent crude futures rose 30 cents, or 0.4%, to $82.33 per barrel by 0120 GMT, after rising 2.6% to its highest since July 26 in the previous session. U.S. West Texas Intermediate crude futures rose 32 cents, or 0.4%, to $80.36 a barrel after gaining 3.3% on Wednesday, reaching its highest since July 19.

Prices rose after the U.S. Energy Information Administration reported on Wednesday domestic crude oil stocks fell for the seventh time in a row last week, the longest declining streak since July 2021.

Global crude oil supplies are expected to tighten in the months ahead as fresh U.S. sanctions on Russian oil producers and tankers have sent Moscow’s top customers scouring the globe for replacement barrels, while shipping rates have surged too.

The latest round of sanctions could disrupt Russian oil supply and distribution significantly, the International Energy Agency said in its monthly oil market report on Wednesday.

The Organization of Petroleum Exporting Countries and its allies, which have been curtailing output over the past two years, are likely to be cautious about increasing supply despite the recent rally in prices, said Commodity Context founder Rory Johnston.

“The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process,” he said.

Limiting oil’s gains, Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners, according to an official.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Best Continuation Candlestick Patterns: Bullish and Bearish Examples

    • June 2, 2025
    Best Continuation Candlestick Patterns: Bullish and Bearish Examples

    eToro Extends Deal with Dutch Club AZ Alkmaar as Betting Brands to Exit Premier League

    • June 2, 2025
    eToro Extends Deal with Dutch Club AZ Alkmaar as Betting Brands to Exit Premier League

    26 Degrees’ 2024 Profit Plunged 92% as Revenue Took a Hit

    • June 2, 2025
    26 Degrees’ 2024 Profit Plunged 92% as Revenue Took a Hit

    Yen Surges as Global Trade Woes Fuel Demand for Safe Havens. Forecast as of 02.06.2025

    • June 2, 2025
    Yen Surges as Global Trade Woes Fuel Demand for Safe Havens. Forecast as of 02.06.2025