Oil prices climb over 1% after surprise drop in US crude stocks

Global oil prices rose over 1% in European trade on Wednesday after a surprise drop in US crude stocks last week according to initial data, with the official numbers released later today from the EIA.

Prices are also boosted by OPEC’s commitment to an optimistic view for global demand growth on oil in the next two years.

Prices

US crude rose 1.2% to $78.92 a barrel, with a session-low at $77.60, while Brent added 1.1% to $83.20 a barrel, with a session-trough at $81.99. 

US crude fell 0.1% on Tuesday, while Brent gave up 0.15% as the dollar rebounded against major rivals. 

US Crude Stocks 

Initial data from the American Petroleum Institute showed commercial crude stocks down by 5.5 million barrels in the week ending March 8, while analysts expected a build of a million barrels. 

According to the data, total stocks have thus fallen to 452.6 million barrels, a month low, in a positive sign for demand in the world’s largest fuel consumer. 

Now traders await official data from the Energy Information Administration, expected to show a buildup of 0.9 million barrels, the seventh such weekly increase in a row.

Global Demand 

OPEC has upheld its forecasts for strong demand growth on oil by 2.25 million bpd in 2024, and by 1.85 million bpd in 2025, while increasing forecasts for global GDP growth this year.