Oil prices closed slightly higher on Thursday after a large draw in U.S. fuel stocks offset oversupply and demand concerns. Brent rose 28 cents (0.4%) to $72.56 a barrel, while U.S. WTI gained 27 cents (0.4%) to $68.70. Both briefly dipped into negative territory during the session.
For the week, Brent was set to lose about 1.7%, while WTI was on track for a 2% weekly drop, driven by a stronger U.S. dollar and rising supply concerns. U.S. gasoline stocks dropped 4.4 million barrels, their lowest level since November 2022, while distillate stocks fell 1.4 million barrels.
Capping gains, U.S. crude inventories rose by 2.1 million barrels, much more than analysts’ expectations. Additionally, the IEA projected global oil supply would exceed demand by 2025 due to increasing output from non-OPEC producers like the U.S.
The dollar surged to a one-year high amid higher yields, making oil more expensive in other currencies. Analysts expect the market to be “balanced to marginally oversupplied” in 2025, with Brent forecasted to average $80 a barrel next year.