Oil prices rose again on Thursday, supported by a sharp and unexpected drop in US inventories, amid global anticipation of geopolitical developments that could affect the supply map and market movements.
According to trading data, Brent crude futures (December delivery) rose by 0.3% to trade at $63.71 per barrel, while US West Texas Intermediate (WTI) crude rose by the same percentage to reach $59.68 per barrel. Later updates indicated continued upward momentum, with Brent touching the $64 mark and WTI approaching $59.71.
Significant Drop in Inventories
The biggest boost to prices came from the US Energy Information Administration’s report, which revealed a 3.4-million-barrel drop in crude inventories for the week ending November 14. This decline far exceeded analysts’ expectations, who had predicted a drop of no more than 0.6 million barrels.
According to energy experts, the decline is attributed to increased US crude exports and higher refinery activity.
Factors Limiting Gains
Despite the positive data, price gains remained limited by several pressure factors, most notably:
* Rising gasoline inventories: An unexpected increase of 2.3 million barrels was recorded, raising concerns about weak domestic fuel demand.
* Geopolitical developments: Investors are monitoring reports of US-Russian diplomatic efforts to discuss a new peace initiative regarding Ukraine, in addition to anticipating the implementation of new US sanctions on several Russian energy companies.
Awaiting OPEC+ Decisions and Global Demand
Markets remain on tenterhooks for any signals regarding global oil demand levels and the direction of OPEC+ decisions amid rapidly changing variables that are impacting supply-and-demand balances.
