Oil prices edged higher as US distillate drawdown outweighed crude build
Oil prices edged higher on Wednesday, 19 March 2025, as a sharper-than-expected drop in US fuel inventories countered the impact of rising crude stockpiles.
Oil prices edged higher on Wednesday, 19 March 2025, as a sharper-than-expected drop in US fuel inventories countered the impact of rising crude stockpiles.
Brent crude futures settled 22 cents higher at $70.78 a barrel.
US West Texas Intermediate (WTI) gained 26 cents to $67.16.
The EIA reported that US distillate inventories, which included diesel and heating oil, declined by 2.8 million barrels last week, far exceeding market expectations of a 300,000-barrel drawdown. This outweighed the pressure from a larger-than-anticipated 1.7 million-barrel build in crude stocks.
Meanwhile, investors assessed the global supply outlook amid escalating geopolitical tensions in the Middle East. The Israeli military resumed ground operations in Gaza, while the US announced that it would continue attacks on Houthis, raising concerns over potential supply disruptions.
Market sentiments remained cautious, however, as the US Federal Reserve kept interest rates unchanged despite expectations of slower economic growth.
Written by: Derek Yong