Oil prices increased again as a report indicated a decline in US stockpiles, signaling tighter supply and rising demand for heating fuel
New York: Oil prices are on the rise again. They went up for the second day in a row after a report showed US stockpiles are dropping.
West Texas Intermediate is now close to $75 a barrel, which is pretty good news. It gained about 1% just yesterday. Brent crude is also doing well, closing above $77.
The American Petroleum Institute reported a drop of 4 million barrels in stockpiles last week. If this is confirmed by the government later today, it would mark the seventh consecutive week of declines. That’s the longest streak we’ve seen in three years!
Also, the cold weather in the US is pushing up demand for heating fuel. This is making folks a bit nervous about potential freeze-offs in production areas. So, it’s a bit of a mixed bag, but prices are looking strong.
Interestingly, Russian oil production has dipped below its OPEC+ targets. Their seaborne exports are at the lowest level since August 2023. Meanwhile, in China, ports are being told to keep US-sanctioned tankers from docking. It’s all about tightening supply.
Stockpiles at Cushing, which is the delivery point for WTI, have also dropped by 3.1 million barrels. If this is confirmed, it would be the lowest level since 2014. So, things are definitely heating up in the oil market!
