Oil prices are rising on reports that U.S. stockpiles have declined in recent weeks.
The Energy Information Administration reports that U.S. crude stockpiles dropped the most
since the end of May, falling by 4.52 million barrels last week. At the same time, crude exports
rose to a record level as European nations scramble to replace Russian oil.
That news sent the price of West Texas Intermediate crude oil, the American standard, up $2.28
U.S. to settle at $97.26 U.S. per barrel. The price of Brent crude oil, the international
benchmark, gained $2.22 U.S. to settle at $106.62 U.S. a barrel.
Oil prices have gained 25% since the start of this year, although the gains following Russia’s
invasion of Ukraine this past February have now been reversed.
Adding to supply concerns, a power outage in Kazakhstan reduced electricity deliveries to an oil
pumping station on a key crude pipeline, according to the nation’s Energy Ministry. The pipeline
handles about 1.4 million barrels of crude oil per day.
There is also a growing divide between the price of West Texas Intermediate and Brent crude
oil. The U.S. benchmark was trading nearly $10 U.S. below Brent crude oil contracts after
closing earlier this week at its biggest discount since 2019.
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