Benchmark crude oil prices, including Brent and West Texas Intermediate (WTI), increased on Thursday. This upward trend followed a 2% decline during the prior trading session. A larger-than-expected draw in U.S. crude stockpiles primarily drove the recovery. A broader rally across risk assets also supported prices.
U.S. Inventories Show Mixed Trends
The market presented a complex picture despite the overall price increase. U.S. crude stockpiles experienced a significant decrease. However, inventories of refined products told a different story. Gasoline and distillate stocks in the United States actually recorded an increase.
Broader Economic Factors at Play
Global equity markets played a role in supporting oil prices. A general rally in these markets often signals increased investor confidence. This sentiment typically benefits commodities like oil.
Dollar Strength Counteracts Gains
A strong U.S. dollar, however, exerted downward pressure on oil prices. A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies. This factor often limits potential gains for crude oil.
Consequently, oil prices saw gains from falling crude inventories and a positive risk-asset environment. These gains faced limitations from rising refined product stockpiles and a robust U.S. dollar. The market continues to balance various influencing factors.
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