Oil Trades Near Highs as Stockpiles Drop
Oil held near a five-month high as U.S. crude inventories posted their longest draw since 2021 amid rising risks to global supply.
Brent crude traded near $82 a barrel, after hitting its highest since July on Wednesday. New U.S. sanctions on Russia could “significantly disrupt” its supply and distribution chains, the International Energy Agency said.
Traders are also concerned that action against Iran could be tightened.
In the U.S., inventories fell for eight weeks to their lowest since April 2022. The West Texas Intermediate crude flash spread — the difference between the two nearest contracts — has widened to $1.29 a barrel, from 42 cents a month ago. The pattern, known as backwardation, signals a tightening market.
Source: Bloomberg