Oil prices saw a rise on Wednesday morning, driven by early data showing a bigger-than-expected drop in U.S. crude inventories.
This suggests either a tightening supply or a boost in demand from the world’s largest oil consumer.
According to Bloomberg, U.S. crude stockpiles decreased by 4.2 million barrels for the week ending August 1, reversing a previous increase of 1.54 million barrels. Analysts had only predicted a decline of 1.8 million barrels, so this larger-than-anticipated drawdown is helping to push prices up across global markets.
As of 7:47 a.m. CET on Wednesday, West Texas Intermediate (WTI) crude for September delivery was priced at $65.57 per barrel, marking an increase of 41 cents, or 0.63%, from the previous day’s close. Meanwhile, Brent crude for October delivery climbed by 48 cents, or 0.71%, reaching $68.12 per barrel.
This unexpected drop in inventory highlights a tighter market situation and adds to the upward trend in commodity prices, especially in the energy sector.
