Oil prices advanced on Thursday, driven by positive signs for U.S. fuel demand after an unexpected drop in crude and gasoline inventories, and potential delays in OPEC+ production increases. Brent crude climbed 0.65% to $73.02 per barrel, while West Texas Intermediate (WTI) rose 0.63% to $69.04 per barrel.
The Energy Information Administration (EIA) reported a surprise drawdown in U.S. gasoline and crude inventories, contrasting with analyst expectations of inventory increases, highlighting strong domestic demand. This development led investors to see renewed buying opportunities, particularly as OPEC+ considers postponing its scheduled December production increase of 180,000 barrels per day due to softening global demand and rising supply concerns. OPEC+ sources indicated a decision on this could come next week, ahead of the group’s policy meeting on December 1.
In addition, China, the world’s largest oil importer, saw manufacturing growth for the first time in six months, reflecting the effects of recent economic stimulus. Markets are also watching developments around the U.S. presidential election and China’s parliamentary session, where further economic measures could be announced.
Meanwhile, efforts for ceasefires in the Middle East have also reduced regional conflict risks in oil markets, with expectations that diplomatic measures in Lebanon and Gaza will likely have limited impact on oil prices.