Oil Maintains Gains Following Largest US Stockpile Decline in Two Months

Oil prices remained stable following a significant decline in US crude stockpiles, the largest drop since mid-June, which has kept inventories notably below the seasonal average.

Brent crude traded around $67 per barrel after a 1.6% increase on Wednesday, while West Texas Intermediate was priced at $63. According to figures from the Energy Information Administration, nationwide crude stockpiles decreased by 6 million barrels last week, with gasoline inventories also falling for a fifth consecutive week.

Despite these recent gains, oil prices are still down over 10% this year due to concerns regarding the repercussions of US trade policies and the easing of OPEC+ production cuts, which raises the likelihood of oversupply following the peak summer demand period. Traders are also monitoring developments toward a ceasefire in the ongoing conflict in Ukraine.

While Moscow has maintained its oil exports in spite of extensive sanctions, a significant portion of this oil has been directed to India. However, the US government has criticized India for its purchases of Russian crude, with President Donald Trump warning New Delhi of possible economic sanctions.

Furthermore, crude inventories at Cushing, Oklahoma—the main US storage hub—increased for the seventh consecutive week, as reported by the EIA. This delivery point for WTI futures has recently seen a surge in supply from the Permian Basin.

“In the long run, you have to focus on the fundamentals and anticipate a downward trend, potentially lasting until at least the middle of next year,” stated John Driscoll, director and founder of the Singapore-based consulting firm JTD Energy Services Pte.

Prices:
Brent for October settlement increased by 0.4% to $67.09 per barrel as of 1:15 p.m. in Singapore. WTI for October delivery climbed 0.5% to $63.00 per barrel.

© 2025 Bloomberg

Stay updated with Moneyweb’s comprehensive finance and business news on WhatsApp here.