Oil Prices Rise as U.S. Crude Inventories Drop

Oil Prices Strengthen After EIA Reports Big Inventory Decline

Oil prices rose on Wednesday after data revealed that U.S. crude and fuel inventories fell more than expected last week. The surprising drawdown came as President Donald Trump’s positive outlook on upcoming U.S.–China trade talks helped ease economic concerns.

Brent crude futures climbed 52 cents, or 0.8%, to settle at $64.92 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 33 cents, or 0.6%, to close at $60.48.

According to the U.S. Energy Information Administration (EIA), U.S. crude oil, gasoline, and distillate fuel stockpiles each fell more than analysts had forecast. Crude oil stocks dropped by nearly 7 million barrels, a sharp contrast to the predicted 211,000-barrel decline.

Analysts Reassess Global Oil Surplus Expectations

The substantial decline in inventories prompted many analysts to reconsider assumptions of an oil glut in global markets. With the OPEC+ alliance increasing output and U.S. production at record highs, the latest EIA figures challenged the widespread belief that supply would soon outpace demand.

“Where’s the glut?” asked Price Futures Group analyst Phil Flynn following the report. “The longer the glut doesn’t hit, the more we will question whether it exists,” he said.

Flynn’s remarks underscore a growing shift in sentiment. Traders now see the latest data as proof that strong demand continues to absorb available supply, even with ongoing production growth from major producers.

EIA Data Suggests Strong Implied Oil Demand

The EIA data not only revealed tighter inventories but also suggested robust implied demand for oil in the United States. UBS analyst Giovanni Staunovo emphasized that the combination of falling stockpiles and strong consumption signals “a very positive development for crude oil prices.”

The EIA’s findings fueled renewed optimism among energy investors. Many believe the results show the market remains well-balanced despite production increases.

Natural Gas Prices Slip Slightly

While crude oil gained ground, natural gas prices edged lower during Wednesday’s trading session. Prices settled at $3.336 per MMBtu, down $0.009, or 0.27%, from the previous day. Analysts attributed the dip to mild weather patterns and steady storage levels across key regions.

Oklahoma Energy Stocks Decline Despite Oil Price Gains

Despite stronger oil prices, the day ended with losses for the majority of Oklahoma energy stocks. Empire Petroleum led the local market decline, falling nearly 6% for the day. Other Oklahoma-based energy companies saw smaller losses ranging between 1% and 2%.

Traders said the mixed performance reflected sector-specific volatility, with investors awaiting upcoming quarterly earnings reports and further clarity on domestic production trends.