Early on Thursday, Brent futures for May rose by $0.11 to $84.14 a barrel, and April WTI crude increased by $0.10 to $79.82 per barrel, Reuters reported.
This rise follows a 3 per cent surge to a four-month high on Wednesday, driven by robust US demand and geopolitical concerns following Ukrainian attacks on Russian refineries.
US gasoline stocks dropped to a three-month low after a 5.7-million-barrel decline, significantly exceeding the anticipated 1.9-million-barrel draw.
The US Gulf Coast reported the lowest motor fuel stocks since November 2022, while demand indicators showed an increase to over 9 million barrels per day.
Unexpectedly, US crude inventories also fell as refinery processing ramped up. In a strategic move, the US added approximately 3.25 million barrels of oil to its Strategic Petroleum Reserve for August.
Geopolitically, the conflict escalated with Ukrainian drones striking Russian refineries for a second consecutive day, leading to a major fire at Rosneft’s largest refinery and the shutdown of two key refining units.
Market analysts are closely monitoring the situation, noting that oil prices may consolidate around the $80.55 to $81.65 per barrel range ahead of the Federal Reserve’s FOMC meeting on March 20, which could influence future pricing dynamics.
