Brent crude oil appreciated by 1.1% to $82.96 per barrel following a decline in U.S. distillate and gasoline inventories.
The surge in Brent crude prices was a rebound from the recent downward trend in the oil market.
The unexpected rise in Brent crude was propelled by the latest data from the U.S. Energy Information Administration (EIA), which reported a smaller-than-anticipated build of 1.4 million barrels in crude oil inventories for the week ending March 1st.
More significantly, distillate and gasoline stocks witnessed remarkable declines, with energy firms withdrawing 4.1 million barrels from distillate stockpiles and 4.5 million barrels from gasoline reserves.
Analysts had initially projected a build of 2.1 million barrels in crude oil inventories, highlighting the discrepancy between expectations and actual figures.
The substantial drawdown in distillate and gasoline stocks has grabbed the attention of the market, signaling a tightening of supply conditions.
Phil Flynn, an analyst at Price Futures Group, emphasized the significance of the drawdown in distillates and gasoline, characterizing it as a “wake-up call” to the tightness of the market.
The unexpected decrease in inventories suggests that demand for oil-related products remains robust despite recent market volatility.
The surge in Brent crude prices underscores the intricate relationship between supply and demand dynamics in the global oil market.
As the industry navigates through fluctuating conditions, stakeholders closely monitor inventory levels and geopolitical developments to anticipate future trends and opportunities in the energy sector.
