Oil prices edged higher on Thursday, supported by a sharper-than-expected decline in United States distillate inventories and renewed geopolitical tensions in the Middle East.
As of 2:35 pm AEDT (3:35 am GMT), Brent crude futures climbed $0.39, or 0.6%, to $71.17 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $0.27, or 0.4%, to $67.43 per barrel.
The gains followed data from the U.S. Energy Information Administration (EIA) showing a significant drawdown in distillate inventories, which include diesel and heating oil.
Stockpiles fell by 2.8 million barrels last week, far exceeding analysts’ expectations of a 100,000-barrel decline. However, U.S. crude inventories rose by 1.7 million barrels, surpassing the forecasted increase of 1.1 million barrels.
Geopolitical risks also contributed to oil price gains, with tensions escalating in the Middle East. Israel launched a fresh ground offensive in Gaza on Wednesday, ending a ceasefire that had lasted nearly two months.
Meanwhile, the U.S. conducted airstrikes against Houthi targets in Yemen in response to attacks on commercial vessels in the Red Sea.
U.S. President Donald Trump has warned that Iran will be held accountable for any future Houthi actions.
Meanwhile, Ukrainian President Volodymyr Zelenskyy agreed to a partial ceasefire in Russia’s invasion of Ukraine on a call.
