Oil market soared on heightened MEA tension and a large draw in US inventory
The US saw a decrease in commercial crude stocks by 3.4 million barrels last week, marking the fifth consecutive week of drawdowns - the longest such streak since January 2021.
International benchmarks for crude oil soared nearly 3% on Wednesday, 31 July as concerns over escalating conflict in the Middle East and a significant drop in US crude stockpiles drove market activity.
Global benchmark Brent crude futures closed at $80.72/barrel, up $2.09 or 2.66%.
WTI saw an even larger jump of $3.18 or 4.26% to settle at $77.91/barrel.
The US saw a decrease in commercial crude stocks by 3.4 million barrels last week, marking the fifth consecutive week of drawdowns - the longest such streak since January 2021.
The geopolitical tension was further exacerbated by Israel’s recent strike on Hamas’s political leader, potentially endangering the ongoing cease-fire negotiations between Israel and Hamas. The heightened instability in the oil-producing region has investors on edge.
Written by: Rochelle Nguyen