Key Takeaways:
West Texas Intermediate and Brent crude prices pushed higher after the US Energy Information Administration (EIA) reported that national crude oil inventories fell by 4.31 million barrels last week, a figure that far outpaced market expectations.
The draw significantly exceeded the consensus analyst forecast of a 2.12 million barrel decrease and a Bloomberg user poll projecting a 2.5 million barrel drop, according to the official data released Wednesday. The report marks the fourth straight week of declines, indicating unexpectedly strong demand or tighter supply conditions.
The EIA data showed inventory declines across all five US regions, from the East Coast to the West Coast. Stockpiles in the Cushing, Oklahoma storage hub, the delivery point for WTI futures, also fell, reinforcing the supply tightness. The prior week saw a draw of 2.313 million barrels.
This larger-than-expected inventory draw adds another layer of support to an oil market already buoyed by geopolitical tensions. Brent crude, the global benchmark, has remained above $100 per barrel for months, trading near $107 following the report. The market continues to monitor the fragile ceasefire between the US and Iran and a high-stakes summit between the US and China, the largest buyer of Iranian oil. The International Energy Agency recently stated that global oil supply will not meet total demand this year, a view that supports prices remaining elevated for the remainder of 2026.
This article is for informational purposes only and does not constitute investment advice.
