Brent crude futures were up by 23 cents, or 0.3% at $78.56 a barrel while US West Texas Intermediate climbed by 29 cents or 0.4% to $75.52 a barrel.
Increased fuel demand has resulted in notable declines, exceeding expectations, with US crude oil stocks decreasing by a whopping 3.7 million barrels to conclude at 429 million barrels. This marks the sixth consecutive week of declining inventories.
According to the US Energy Information Administration, weekly production reached record highs of 13.4 million barrels per day (bpd) for the week ending August 2nd.
However, there continue to be market doubts about possible supply breakdowns within the region. Recent attacks on ships in the Red Sea have resulted to longer transport routes used by tankers, thereby increasing the duration taken for oil transportation.
These factors have contributed to increased oil prices that had previously come down to multi-month lows due to concerns about a potential US recession and slowdown in global economic growth.
The movement patterns in today’s market highlights the constant fluctuation of oil prices as driven by forces of supply and demand, international relations crises, and economic trends.
