Oil prices rose 2% on Wednesday as U.S. government data showed smaller-than-expected crude inventory builds and larger-than-expected fuel draws, indicating stronger demand. Brent settled up $1.39 (2%) at $70.95, while WTI gained $1.43 (2.2%) to $67.68.
U.S. crude stockpiles increased by 1.4 million barrels, lower than the 2-million-barrel rise expected. Meanwhile, gasoline inventories fell by 5.7 million barrels (vs. 1.9 million expected), and distillates also saw a larger-than-anticipated drop.
A weaker U.S. dollar supported oil prices, as the dollar index fell to a five-month low, making crude cheaper for foreign buyers. However, concerns over U.S. tariffs, inflation, and a potential recession continued to weigh on market sentiment.
OPEC maintained its 2025 global oil demand growth forecast, citing strong travel-related consumption, despite trade uncertainties. OPEC+ production increased by 363,000 bpd in February, mainly due to Kazakhstan exceeding its output quota.