Dec 23, 2024 6:20 a.m.

Global oil prices rebound amid US crude draw and geopolitical tensions

Adding to the upward pressure is the escalated tension in Eastern Europe while traders also closely monitor the geopolitical risks in the Middle East to gauge the potential impact on the supply.

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Oil prices surged by over 2% on Wednesday, bouncing back from multi-month lows due to a larger-than-expected draw in US crude stockpiles and escalating geopolitical tensions.

  • Brent crude futures rose $1.85, or 2.42%, to settle at $78.33/barrel.
  • WTI crude increased by $2.03, or 2.77%, to $75.23/barrel. 

The Energy Information Administration (EIA) reported a 3.7-million-barrel drop in US crude inventories last week, marking the sixth consecutive week of declines. This reduction, which far exceeded the anticipated 700,000-barrel draw forecasted by analysts

Adding to the upward pressure is the escalated tension in Eastern Europe while traders also closely monitor the geopolitical risks in the Middle East to gauge the potential impact on the supply.

 

Written by: Rochelle Nguyen