Oil prices soared by 3% on Wednesday, reaching their highest estimated level in 2023. This increase came as a result of a significant decline in U.S. crude stockpiles, which raised concerns about tight global supplies.

Brent Crude Futures

Brent crude futures rose by $2.59, or 2.8 percent, settling at $96.55 per barrel. Moreover, it surpassed the $97 mark during the session.

U.S. West Texas Intermediate Crude Futures

U.S. West Texas Intermediate crude futures experienced a jump of $3.29, or 3.6 percent, reaching $93.68. The session’s peak even exceeded $94.

Decline in U.S. Crude Inventories

Government data revealed that U.S. crude inventories fell by approximately 2.2 million barrels last week, totaling 416.3 million barrels. This decline exceeded the expectations of analysts polled by Reuters, who predicted a decrease of about 320,000 barrels.

Lowest Level of Oil Inventories at Cushing

U.S. oil inventories at the primary storage facility in Cushing, Oklahoma, dropped by 943,000 barrels throughout the week, falling below 22 million barrels. This marks the lowest level since July 2022. The near-record low inventories at Cushing have sparked concerns about the remaining oil’s quality and the possibility of it falling below minimum operating levels.

Source

Source: “Reuters” + Media