Oil prices surged to their highest levels in over three months on Wednesday following a report indicating a significant decrease in U.S. inventories. Brent crude futures, the global benchmark, surpassed $85 a barrel early in the day—reaching its highest point in over three months. Currently, it is trading at $85.39. West Texas Intermediate (WTI) futures also experienced a rise of 0.8% to $81.98 a barrel, marking their highest level since mid-April before settling at $81.85.
According to insider sources citing figures from the American Petroleum Institute, U.S. oil inventories witnessed a staggering decline of 15.4 million barrels during the week ending July 28, as reported by The Wall Street Journal. This significant drawdown indicates robust demand and a tightening supply, which subsequently drove oil prices higher.
Later today, when the U.S. Energy Information Administration releases its data, if the figures align with the reported decline, it will mark the largest drop in U.S. crude inventories since 1982—when records were first kept.
In July, WTI futures experienced a remarkable climb of 16%, marking the largest monthly gain since July 2022.