Oil prices rise more than $2 amid falling US inventories

Oil prices rise more than $2 amid falling US inventories

Global crude oil prices climbed by more than $2 per barrel in the latest trading session, as a decline in US crude inventories boosted market sentiment and supported prices.

According to Reuters, the rise came after traders responded to signs of tighter oil supplies in the United States. A drop in crude stockpiles often signals stronger demand or reduced availability, which can encourage investors to push prices higher.

Oil prices had fallen in the previous session after tensions between Washington and Tehran showed signs of easing temporarily. However, the market regained momentum in the latest session as supply concerns returned to focus.

Brent crude futures gained $2.71, or 3.2%, to reach $86.80 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures rose $2.26, or 3.4%, to trade at $81.95 per barrel.

Market participants continue to closely monitor developments in the Middle East, particularly any changes in US-Iran relations, as well as global supply conditions. Any renewed tensions in the region could further affect oil markets because of the Middle East’s importance to global energy supplies.

Analysts also expect traders to keep an eye on upcoming inventory data and broader demand trends. A combination of falling stockpiles, geopolitical uncertainty and concerns over supply could continue to create volatility in international oil prices in the coming sessions.