Oil prices rose sharply on Wednesday, with Brent crude settling up $2.11, or 2.64%, at $82.03 a barrel, its highest since August. U.S. West Texas Intermediate (WTI) climbed $2.54, or 3.28%, to $80.04, marking its highest close since July.
The rally followed a significant drop in U.S. crude inventories to their lowest level since 2022, driven by higher exports and lower imports. Gasoline and distillate stocks rose more than anticipated. Analysts attributed the crude draw to import-export dynamics, with many exports booked before the latest U.S. sanctions on Russian oil.
The new sanctions heightened supply concerns, with reports of difficulties offloading Russian crude adding to short-term market tightness. However, news of a ceasefire agreement between Israel and Hamas moderated gains by alleviating some geopolitical risks.
Contributing to the price surge was a weaker U.S. dollar, which generally supports oil prices, and optimism about potential Federal Reserve rate cuts. Meanwhile, OPEC maintained its forecast for global oil demand growth at 1.43 million barrels per day in 2026, consistent with the pace projected for 2025.