West Texas Intermediate (WTI) crude prices maintained levels above $68.50, bolstered by a surprisingly large draw in U.S. crude oil inventories. The unexpected reduction in stockpiles reflects tightening supply conditions, catching market analysts off guard amid forecasts of smaller declines.
The Energy Information Administration’s report revealed a substantial draw of 5.6 million barrels in U.S. crude inventories for the week. This contrasts sharply with analysts’ predictions of a modest decline around 1.2 million barrels, amplifying market sentiment that demand could be outpacing supply recovery. Meanwhile, global oil markets remain on edge, balancing recession fears with geopolitical risks and production adjustments from major exporters.
Investors are closely watching how these supply dynamics might influence prices in the coming weeks, especially as broader economic factors weigh on energy demand expectations. The WTI benchmark‘s resilience underscores the volatility in global oil markets, as traders assess whether the current rally can sustain momentum.
