Oil prices climbed on Tuesday after a surprise drawdown in U.S. crude inventories, according to the American Petroleum Institute (API). The unexpected decline boosted optimism about demand and tightened market conditions.
Market Reaction
The news triggered a wave of buying, pushing Brent crude futures up by 1.5% to $83.60 a barrel, while West Texas Intermediate (WTI) crude rose by 1.7% to $79.10 a barrel.
Inventory Data
The API reported a decrease of 6.2 million barrels in U.S. crude inventories for the week ended February 24th. Analysts had been expecting a build of around 1 million barrels.
Factors Contributing to Drawdown
- Increased refinery runs
- Strong export demand
- Potential weather-related disruptions
Analyst Commentary
“The surprise inventory drawdown is a bullish signal for the oil market,” said John Smith, an energy analyst at Global Investments. “It suggests that demand is stronger than anticipated, and it could lead to further price increases in the near term.”
Looking Ahead
Investors are now awaiting official inventory data from the Energy Information Administration (EIA), which is due to be released later today. The EIA data will provide further insights into the state of the U.S. oil market.
