Oil rises supported by a decline in US crude inventories

Oil prices rose today, Thursday, after the losses they incurred in the previous session, supported by a larger-than-expected decline in US crude inventories and gains in global markets in general.

Brent crude futures increased 57 cents, or 0.9 percent, to $64.08 per barrel by 11:01 GMT, and US West Texas Intermediate crude futures rose 51 cents, or 0.9 percent, to $59.95.

Both crude contracts fell by about two percent in yesterday’s session, Wednesday, after reports indicated that the United States is renewing its efforts to end the war between Russia and Ukraine, and that it has established a framework for that, which may mean pumping more Russian crude into the market.

Global stock markets rise

Global stock markets, which often move in harmony with oil prices, rose today, Thursday, as traders welcomed the profits of artificial intelligence chip giant Nvidia, which exceeded expectations.

Tomorrow, Friday, a deadline granted to companies to end transactions with the two giant Russian oil companies, Rosneft and Lukoil, expires, while Lukoil and any parties interested in its assets have until December 13 to agree on deals that include its huge international portfolio.

Oil prices received support from demand levels, as US crude oil inventories fell more than expected, reflecting an increase in refining operations amid good profit margins in the world’s largest oil-consuming country, and an increase in demand for US crude exports.

The US Energy Information Administration said that crude oil inventories fell by 3.4 million barrels to reach 424.2 million barrels in the week ending November 14, compared to analysts’ expectations in a Reuters poll of a decline of 603 thousand barrels.

However, analysts also noted that US gasoline and distillate inventories rose for the first time in more than a month, a sign of slowing consumption.

Continued fears of excess supply in the oil market and the dollar index approaching its highest level in six months, which increases the cost of dollar-denominated commodities such as oil, limited the gains.