Oil Prices Increase Slightly Amid Reduced Crude Stockpiles

Oil prices settled slightly higher on Thursday following data showing that U.S. weekly crude stockpiles unexpectedly fell last week, indicating renewed demand after weather-related disruptions.

At 2:30 p.m. ET (1830 GMT), West Texas Intermediate (WTI) crude futures rose by 0.4%, reaching $70.67 per barrel, while Brent oil futures increased by 0.3% to $74.44 per barrel.

U.S. crude inventories declined by approximately 2.2 million barrels for the week ending October 11, diverging from expectations of a build of around 1.8 million barrels.

Gasoline inventories, a product refined from crude, saw a drop of roughly 2.2 million barrels, contrary to expectations for a draw of 1.4 million barrels. Furthermore, distillate stockpiles also fell by 3.5 million barrels, against an anticipated decline of 2.5 million barrels.

On the international front, a briefing from China’s housing ministry regarding plans to support the struggling real estate market did little to alleviate concerns about slowing growth in the world’s second-largest economy.

Additionally, the European Central Bank (ECB) decreased interest rates for the second consecutive meeting, citing an increasingly controlled inflation outlook alongside weakening economic indicators. This reduction may support oil prices, as lower borrowing costs could potentially boost demand.

*(Reporting contributed by Scott Kanowsky and Ambar Warrick.)