Oil Prices increased on Thursday, recovering from early losses after US government data revealed a far more considerable decline in crude and gasoline inventories than predicted. Despite this, Brent prices remained around $3 a barrel lower than Monday’s closing, as traders were concerned that global crude supply would rise as a result of the collapse of talks between the Organization of Petroleum Exporting Countries and allies, including Russia, known as OPEC+, on that day.
Brent crude Oil Prices jumped 0.94 percent to $74.12 per barrel, while West Texas Intermediate futures in the United States rose 1.02 percent to $72.94 per barrel. Both contracts sank to their lowest levels almost three weeks early in the session. Last week, crude stockpiles in the United States declined by 6.9 million barrels to 445.5 million barrels, according to the Energy Information Administration statistics.
Tony Headrick, the energy market analyst at CHS Hedging, said, “The report is bullish, there’s no doubt. We did see a very large increase in total gasoline supplied, which would have led up to the Friday before the Fourth of July weekend.” Last week, disagreements between the two Gulf OPEC allies were made public, with Riyadh and Abu Dhabi clashing over a potential pact that would have brought extra oil to the market.