Oil surged over 2% on large US stockpile draw and potential supply disruptions

Oil prices climbed more than 2% on Wednesday, driven by a significant decline in US crude inventories and heightened concerns over potential supply disruptions following new US sanctions on Russian oil.

Brent crude increased by $2.11 or 2.64% and settled at $82.03/barrel.

WTI rose by $2.54 or 3.28% and closed at $80.04/barrel.

According to the US Energy Information Administration (EIA), crude inventories decreased by 2 million barrels in the week ending January 10, 2025, marking the largest drawdown since April 2022. Industry insiders noted that the large draw was strongly supported by resilient import-export dynamics.

However, the gains were capped by news of the Gaza ceasefire deal.

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Written by: Muhammad Hafiz