Expectations of strong US gasoline demand lead to an increase in oil prices

31 Oct 2024 , 09:28 AM

Optimism regarding U.S. fuel demand after an unexpected decline in crude and petrol inventories sent oil prices higher on Thursday, continuing the surge from the previous day. Support was provided by news that OPEC+ may postpone a planned output increase.

Brent crude futures were up 35 cents, or 0.5%, to $72.90 a barrel. At $68.93 a barrel, U.S. West Texas Intermediate crude futures increased 32 cents, or 0.5%.

After dropping more than 6% earlier in the week due to the decreased likelihood of a larger Middle East conflict, both contracts increased more than 2% on Wednesday.

According to the Energy Information Administration, U.S. petrol inventories unexpectedly dropped to a two-year low in the week ending October 25 due to increased demand, while crude inventories also showed a surprise decline as imports declined.

As Israel’s state radio released what it claimed was a draft agreement allowing for an initial 60-day truce, the prime minister of Lebanon said Wednesday that he hoped a ceasefire agreement with Israel will be revealed within days.

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