Tokyo Monitoring Desk
Crude oil prices increased on Thursday due to rising demand in the United States and ongoing uncertainties surrounding peace efforts to end the war in Ukraine. During early trading, Brent crude futures reached a two-week high, rising by 27 cents, or 0.40%, to settle at $67.11 per barrel. Similarly, West Texas Intermediate (WTI) crude prices increased by 29 cents, or 0.46%, closing at $63 per barrel.
According to the US Energy Information Administration (EIA), US crude oil inventories fell by 6 million barrels last week to 420.7 million barrels, a much larger drop than the 1.8 million barrels decline anticipated in a Reuters survey. Gasoline stocks also declined by 2.7 million barrels, exceeding expectations of a 915,000 barrel drop, signaling strong driving demand during the summer travel season.
This trend is further supported by an increase in the four-week average consumption of jet fuel, which reached its highest level since 2019. ANZ senior commodity strategist Daniel Hynes noted in a market commentary on Thursday that strong demand indicators in the US have bolstered the market, contributing to the rise in crude oil prices.
The combined factors of robust US energy consumption and geopolitical uncertainties continue to influence oil markets as investors monitor developments closely.
