Oil prices increased for the third consecutive session on Thursday, driven by a significant draw in US crude stockpiles, recovering from multi-month lows reached earlier this week.
Brent crude futures climbed by 23 cents, or 0.3%, to $78.56 per barrel, while US West Texas Intermediate (WTI) crude gained 29 cents, or 0.4%, reaching $75.52 per barrel.
Earlier this week, Brent crude fell to its lowest level since early January, and WTI dropped to its lowest point since February, due to concerns about a potential US recession and a global stock market selloff.
According to government data, US crude inventories declined by 3.7 million barrels to 429.3 million barrels last week, marking the sixth consecutive week of decreases. This drop was much larger than the 700,000-barrel reduction forecasted by analysts in a Reuters poll.
Further complicating the supply outlook, the US Energy Information Administration reported a 100,000 barrels per day (bpd) increase in production, reaching a record 13.4 million bpd for the week ending August 2.
Market concerns about potential Middle East supply disruptions have also heightened. The recent deaths of senior members of militant groups Hamas and Hezbollah have raised fears of retaliatory strikes by Iran against Israel. Although there has been no immediate impact on supply, attacks on ships in the Red Sea have led to longer shipping routes, resulting in more oil remaining in transit for extended periods.
Additionally, Libya’s National Oil Corporation has declared force majeure at its Sharara oilfield, effective Tuesday, due to protests that have led to a gradual reduction in production.
