Oil prices rose today, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker U.S. dollar.
Brent crude futures were up 34 cents, or 0.5%, to stand at $71.12 a barrel by 0745 GMT, their highest level since March 3. U.S. West Texas Intermediate crude (WTI) gained 42 cents, or 0.6%, to $67.58, reports AFP.
The price of OPEC basket of twelve crudes stood at $74,12 a barrel on Tuesday, compared with $73,65 the previous day, according to OPEC Secretariat calculations.
U.S. government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrels, outstripping a drop of 300,000 barrels predicted in a Reuters poll.
Also, OPEC’s Monthly Oil Market Report for March 2025, says the Secretariat expects robust oil demand growth to continue in 2026.
Global oil demand for 2026 is forecast to grow by 1.4 mb/d, year-on-year, unchanged from last month’s assessment.
The Organisation for Economic Co-operation and Development (OECD) is forecast to grow by about 0.1 mb/d, y-o-y, while demand in the non-OECD is forecast to increase by about 1.3 mb/d.
“U.S. oil demand outlook remains healthy despite lower air travel passenger volumes,” JPMorgan analysts said in a note, adding that reduced U.S. travel activity did not signal broader weakness in the demand outlook.
Global oil demand averaged 101.8 million barrels per day (bpd), an annual increase of 1.5 million bpd, the analysts said.
U.S. crude inventories, rose 1.7 million barrels, however, exceeding expectations for an increase of 512,000 barrels in an earlier Reuters poll.
A weaker greenback also contributed to oil’s gains, with the dollar on a downtrend since the end of February.
