Oil prices rebounded on Thursday as reports of drawdowns in U.S. crude and gasoline stocks provided support, countering concerns over the possibility of the U.S. Federal Reserve maintaining higher interest rates for an extended period.
Brent crude futures for May increased by 55 cents, or 0.6%, to reach $86.50 a barrel by 0400 GMT, recovering from a 1.6% decline on Wednesday. Similarly, U.S. West Texas Intermediate (WTI) futures for May climbed by 47 cents, or 0.6%, to hit $81.74 a barrel, following a slide of approximately 1.8% in the previous session.
The U.S. Energy Information Administration (EIA) reported that crude inventories in the United States, the world’s largest oil consumer, declined for the second consecutive week. Stockpiles unexpectedly dropped by 2 million barrels to 445 million barrels in the week ended March 15, contrasting with analysts’ projections of a 13,000-barrel increase in a Reuters poll.
Yeap Jun Rong, a market strategist at IG, remarked, “It seems that the bullish mantra is still intact,” highlighting the unexpected drawdown in U.S. crude inventories and ongoing concerns regarding potential supply disruptions in the Russia-Ukraine conflict.
The decrease in stockpiles coincided with a rise in exports and heightened activity by refiners. Gasoline inventories also fell for the seventh consecutive week, declining by 3.3 million barrels to 230.8 million, indicating robust fuel demand.
