FX.co ★ Oil Prices Climb On Supply Concerns

Oil prices rose on Thursday, as signs of strong U.S. demand and lower supply from Russia offset lingering concerns over the COVID situation in China.

Benchmark Brent crude futures jumped $1.51, or 1.4 percent, to $108.31 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up $1.08, or 1.1 percent, at $103.27.

Data from Energy Information Administration (EIA) showed on Wednesday that crude inventories in the U.S. dropped by 8 million barrels last week, confirming the strong numbers released the previous day by the industry body American Petroleum Institute. Analysts were expecting an increase of 2.5 million barrels.

Gasoline inventories fell by 761,000 barrels last week to 232.4 million barrels, while distillate stockpiles dropped by 2.7 million barrels to 108.7 million barrels, the lowest level since May 2008.

The global supply situation remains tight, with the EU still weighing a ban on Russian oil for its invasion of Ukraine and OPEC member Libya saying it was losing more than 550,000 barrels per day of oil output due to blockades at major fields and export terminals.