US Fuel Stocks Drop Lift Oil Prices

Brent futures gained 44 cents or 0.58 per cent to trade at $76.48 a barrel and the US West Texas Intermediate (WTI) crude futures rose by 32 cents or 0.44 per cent to $72.57 per barrel.

The Energy Information Administration said on Thursday that US crude oil stockpiles rose slightly more than expected while fuel inventories fell last week as seasonal maintenance at refineries led to lower processing.

Crude inventories rose by 4.6 million barrels to 432.5 million barrels in the week ended February 14 while gasoline stocks fell by 151,000 barrels to 247.9 million barrels, the EIA said and distillate stockpiles, which includes diesel and heating oil, fell by 2.1 million barrels to 116.6 million barrels.

Market analysts noted that the crude build was a bit larger than expected, but the modest draw in gasoline and a larger draw in distillate kept total inventories flat.

Meanwhile, Russia and the US have had their first meeting since the start of the Ukraine war, aimed at restoring relations and preparing the ground for ending the conflict.

However, disruptions to oil supply kept prices elevated as Russia attacked Ukrainian gas infrastructure and damaged gas production facilities overnight.

Russia said Caspian Pipeline Consortium oil flows, a major route for crude exports from Kazakhstan, were reduced by as much as 40 per cent on Tuesday after a Ukraine drone attack on a pumping station.

Pressure came as potential restarts of oil flow from Iraq’s Kurdistan region even as Turkey, which hosts the port of Ceyhan that loads Iraqi oil from the Kurdistan region, said it had not received confirmation from Iraq on the resumption.

A resumption of the Iraqi oil flows would add 300,000 barrels of supply per day onto the market.

Concerns about European and Chinese demand also helped to keep prices in check.

Import tariffs announced by US President Donald Trump’s administration could dent oil prices by raising the cost of consumer goods.