On Wednesday, March WTI crude oil closed up 3.05% at $1.93, while March RBOB gasoline rose 3.55% to $0.0673, as gasoline reached a 2.5-month high. The price surge was influenced by stalled nuclear talks between the US and Iran, amplifying tensions that could affect Iran’s 3.3 million bpd crude production and critical shipping lanes.
The Energy Information Administration (EIA) reported a significant drop in crude inventories, with a decrease of 3.46 million barrels, surpassing analyst expectations of 650,000 barrels. This decline placed US crude inventories 4.2% below the seasonal five-year average. Conversely, gasoline inventories increased by 685,000 barrels, reaching their highest level in over five years.
As of January 30, US crude oil production fell to a 14-month low of 13.215 million bpd, marking a 3.5% weekly decrease. The Baker Hughes report confirmed the number of active US oil rigs remained unchanged at 411, which is above the 4.25-year low of 406 recorded in December.
