Oil prices in Asia experienced a slight increase on Thursday, buoyed by robust demand in the United States following a decrease in gasoline stocks to a three-month low and unexpected drops in crude stockpiles. Additionally, concerns over supply persisted after Ukrainian attacks on Russian refineries.
Brent futures for May rose by 19 cents, or 0.23%, reaching $84.22 a barrel at 0347 GMT, while April U.S. West Texas Intermediate (WTI) crude climbed 15 cents, or 0.19%, to $79.87 per barrel. Both contracts had surged approximately 3% to a four-month high on Wednesday due to the optimistic U.S. demand outlook and heightened geopolitical risks.
ANZ analysts highlighted the influence of strong U.S. product exports on gasoline stocks, which declined to a three-month low. The rising gasoline prices have bolstered the crack spread for refiners. Moreover, market sentiment responded to increasing geopolitical risks after a Ukrainian drone attacked a Russian refinery.
According to the Energy Information Administration (EIA), U.S. gasoline inventories decreased for the sixth consecutive week, plummeting by 5.7 million barrels to 234.1 million barrels, exceeding expectations for a 1.9 million-barrel draw. Stocks of motor fuel at the U.S. Gulf Coast reached their lowest levels since November 2022. Additionally, finished motor gasoline supplied, serving as a proxy for demand, edged up by 30,000 barrels per day to over 9 million bpd for the first time this year.
The combination of robust U.S. demand, declining gasoline stocks, and geopolitical tensions has contributed to the upward trajectory of oil prices, underscoring the continued volatility and uncertainty in global energy markets.
