Oil prices experienced a rebound on Wednesday following a recent decline, driven by a reduction in U.S. crude inventories. Brent crude futures for September increased by 46 cents, reaching $81.47 per barrel at 0020 GMT, while U.S. West Texas Intermediate (WTI) crude for September rose by 42 cents to $77.38 per barrel.
Market sources, referring to data from the American Petroleum Institute (API), reported a decrease in U.S. crude oil, gasoline, and distillate inventories last week. This decline in stockpiles supported the rise in oil prices. WTI had previously dropped 7% over the last four sessions, and Brent had fallen nearly 5% over the preceding three.
According to API data, U.S. crude oil inventories fell by 3.9 million barrels for the week ending July 19. Gasoline inventories decreased by 2.8 million barrels, and distillates were down by 1.5 million barrels. This marked the first consecutive four-week decline in U.S. crude stocks since September 2023.
Official government data on oil inventories is expected to be released later today.
On Tuesday, oil prices hit a six-week low, with Brent crude closing at its lowest level since June 9. This drop was influenced by ongoing ceasefire negotiations between Israel and Hamas, as outlined by U.S. President Joe Biden in May and mediated by Egypt and Qatar. Additionally, concerns over a potential economic slowdown in China, the world’s largest crude importer, further weighed on global oil demand.
