Prices rose nearly 3%, hit by a surprise drop in US oil inventories and the possibility of supply disruptions as Ukraine attacked Russian oil facilities.
At the close of trading on March 13, Brent crude oil prices increased by 2.6% to $84.03 a barrel. This is the highest closing price of this commodity since November 6. US WTI crude oil also increased by 2.8% to $79.7 a barrel.
The U.S. Energy Information Administration (EIA) said energy companies unexpectedly withdrew 1.5 million barrels of crude from storage last week, compared with analysts' forecasts for a 1.3 million-barrel increase in a Reuters poll.
Energy companies also withdrew 5.7 million barrels of gasoline from storage last week, three times the forecast. US gasoline futures rose 2.9% to their highest since September 2023 on the news.
Another reason for the high oil prices was that Ukraine attacked Russian oil refineries with drones on March 13. This caused a fire at the largest oil refinery of the Russian energy company Rosneft.
"As refining capacity is affected by the Ukrainian attacks, Russia may reduce diesel exports and increase gasoline imports. This will impact global prices," Andrew Lipow, president of Lipow Oil Associates, told Reuters .
Crude oil and global financial markets were also supported by news that US inflation did not change the US Federal Reserve's plan to cut interest rates this year. Low interest rates will boost economic growth and oil demand.
The Organization of the Petroleum Exporting Countries (OPEC) recently forecast that oil demand will increase by 2.25 million barrels a day this year. Today, the International Energy Agency (IEA) will release an updated report on the oil market outlook.
Ha Thu (according to Reuters)
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