Oil up in early Thursday trade

Oil prices rose for the third consecutive session on Thursday following a significant drop in US crude stockpiles. Brent crude futures increased by 23 cents to $78.56 a barrel, while US West Texas Intermediate (WTI) crude climbed 29 cents to $75.52.

Earlier in the week, Brent had reached its lowest point since January, and WTI its lowest since February, due to concerns about a potential US recession and a global stock selloff.

Moreover, US crude inventories fell for the sixth consecutive week, decreasing by 3.7 million barrels to 429.3 million barrels, surpassing analyst expectations of a 700,000-barrel draw. Production also rose by 100,000 barrels per day (bpd) to a record 13.4 million bpd.

Market worries over potential Middle East supply disruptions intensified. While no supply has been impacted yet, attacks on ships in the Red Sea have caused tankers to take longer routes, keeping more oil on the water for extended periods. Additionally, Libya’s National Oil Corporation (NOC) declared force majeure at its Sharara oilfield due to protests, leading to a gradual reduction in production.

Attribution: Reuters