By Colleen Howe
BEIJING (Reuters) – Oil prices rose in early trading on Thursday on a decline in U.S. fuel inventories and a ratchetting up of tensions in the Middle East.
Brent crude futures rose 40 cents, or 0.57%, to $71.18 a barrel by 0213 GMT, while U.S. West Texas Intermediate crude (WTI) gained 34 cents, or 0.51%, to $67.50.
The prices rose after U.S. government data showed a higher-than-expected drawdown in distillate inventories for last week.
Distillate inventories, which include diesel and heating oil, fell by 2.8 million barrels last week, more than the 300,000-barrel drop expected in a Reuters poll. [EIA/S]
U.S. crude inventories, though, rose 1.7 million barrels, exceeding an expected 512,000-barrel increase.
Global risk premiums rose after Israel launched a new ground operation on Wednesday in Gaza after breaking a ceasefire of nearly two months.
As well, the U.S. continued airstrikes on Houthi targets in Yemen in retaliation for the group’s attacks on ships in the Red Sea. Trump has also vowed to hold Iran responsible for future Houthi attacks.
Ukrainian President Volodymyr Zelenskiy said on Wednesday a halt on strikes on energy facilities in the war with Russia could be established quickly, suggesting the two sides were moving closer to a potential ceasefire that could see the easing of sanctions and the return of Russian supply to the market.
Trump’s Middle East envoy, Steve Witkoff, has said another round of talks between Russian and U.S. officials aimed at halting the war would take place in Saudi Arabia on Sunday.
In the Americas, Chevron’s CEO asked the Trump administration for an extension of 60 days to wind down its operations in Venezuela, the Wall Street Journal reported on Wednesday, beyond the original April 1 deadline.
Venezuela’s state-run oil company, PDVSA, is making plans to continue exporting oil from its joint venture with Chevron, Reuters has reported.
(Reporting by Colleen Howe; Editing by Tom Hogue)
Comments