Oil prices increased on Thursday due to a decline in US fuel inventories and escalating tensions in the Middle East. Brent crude rose by 0.57% to $71.18 per barrel, while WTI gained 0.51% to $67.50. The price hike followed US government data showing a larger-than-expected drop in distillate inventories, which fell by 2.8 million barrels instead of the anticipated 300,000-barrel decline. However, US crude inventories increased by 1.7 million barrels, surpassing expectations.
Geopolitical factors also contributed to the price rise. Israel resumed ground operations in Gaza, breaking a two-month ceasefire, while the US continued airstrikes on Houthi targets in Yemen. Former President Trump pledged to hold Iran accountable for future Houthi attacks. In contrast, a potential ceasefire between Ukraine and Russia could ease sanctions and restore Russian oil supply.
Meanwhile, US-Russia negotiations regarding the Ukraine conflict are set to continue in Saudi Arabia. In the Americas, Chevron’s CEO requested an extension from the Trump administration to wind down operations in Venezuela beyond the April 1 deadline.
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