Oil prices rose on Thursday, building on a previous rally fueled by unexpected drops in U.S. crude and gasoline inventories and the possibility that OPEC+ might postpone a planned increase in oil production. Brent crude futures rose by 35 cents, or 0.5%, to $72.90 a barrel, while U.S. West Texas Intermediate crude futures increased by 32 cents, reaching $68.93 per barrel. Both contracts had surged more than 2% on Wednesday after a previous drop, supported by reduced concerns about an escalation in the Middle East.
The Energy Information Administration reported that U.S. gasoline stockpiles had fallen to a two-year low for the week ending October 25, with crude inventories also showing an unexpected drawdown due to decreased imports. Analysts had anticipated a rise in both gasoline and crude stockpiles, making the surprise decline a prompt for buying, according to Toshitaka Tazawa, an analyst at Fujitomi Securities. The demand surge was higher than anticipated, further encouraging oil investors.
Reports indicate that OPEC+ may delay its planned production increase of 180,000 barrels per day in December due to concerns over weak demand and growing supply. The decision to postpone could be made as early as next week, with OPEC+ scheduled to meet on December 1 to discuss future policy.
