Oil Prices Surge as US Inventories Fall

24 Jul 2024 , 10:08 AM

Falling U.S. crude inventories pushed oil prices to rise on Wednesday after three days of decrease, yet anticipation of a Middle East peace kept prices from rising further.

Brent crude futures for September increased 46 cents to $81.47 per barrel. September West Texas Intermediate crude jumped by 42 cents to $77.38 a barrel.

Last week, US crude oil, petrol and distillate stockpiles declined, according to market sources citing the American Petroleum Institute (API), a trade association.

Benchmarks increased correspondingly. WTI was down 7% in the previous four sessions, while Brent fell roughly 5% in the previous three.

According to API data, oil inventories fell by 3.9 million barrels in the week ending July 19, according to sources who spoke on the condition of anonymity. Petrol inventories declined by 2.8 million barrels, while distillates shed 1.5 million barrels.

This would be the first time crude stocks in the United States have fallen for four weeks in a row since September 2023.

Official official data on oil inventories will be released on Wednesday.

Oil prices plummeted to a six-week low on Tuesday, with Brent ending at its lowest level since June 9 following cease-fire talks between Israel and Hamas in a proposal detailed by US President Joe Biden in May and brokered by Egypt and Qatar.

Prices also fell due to ongoing concerns that economic slowdown in China, the world’s largest crude importer, will reduce global oil demand.

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