Oil market strengthened as US crude inventories declined
The latest Energy Information Administration (EIA) data showed US crude stockpiles fell by 3.3 million barrels last week, far surpassing expectations of a 956,000-barrel decline, signalling the wane of seasonal maintenance at refineries.
Oil prices advanced on Wednesday on the back of a larger-than-expected draw in US crude and fuel inventories amid growing concerns over the supply of outlook of Venezuela’s barrels.
Brent crude futures settled 77 cents higher at $73.79 a barrel.
US West Texas Intermediate crude rose 65 cents to $69.65.
The latest Energy Information Administration (EIA) data showed US crude stockpiles fell by 3.3 million barrels last week, far surpassing expectations of a 956,000-barrel decline, signalling the wane of seasonal maintenance at refineries. The draw was accompanied by a draw in distillate and gasoline inventories, reflecting ongoing demand.
Meanwhile, market participants assessed the potential implications of the US’s tariff threats on nations importing oil from Venezuela. This move had prompted top buyer China to pause purchases from the origin, raising questions over Caracas’s ability to commercialise its crude and sparking speculations over widespread production overhauls.
Written by: Derek Yong