Oil Climbs Above $71 as Inventory Drawdowns Surprise Markets
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Crude oil prices advanced Tuesday after weekly U.S. inventory data revealed larger-than-expected drawdowns across crude and products.
The EIA reported a 4.2 million barrel decline in crude stocks, far exceeding forecasts for a modest build. Gasoline and distillate inventories also fell sharply amid strong implied demand.
Brent crude rose to $71.50 per barrel, while WTI traded near $70. The moves extended recent weather-driven gains.
“Refinery runs are high and exports remain robust,” said one energy trader. “Physical markets are tighter than headlines suggest.”
OPEC+ supply additions continue gradually, but secondary sources indicate some members are struggling to meet quotas. Geopolitical premiums persist without major disruptions.
Cold weather across the U.S. Northeast and Europe is boosting heating oil and natural gas demand, providing spillover support.
Energy stocks outperformed, helping lift broader indices. Refining margins expanded further.
Longer-term headwinds from electrification and renewables remain, but near-term fundamentals dominate trading.
