March 09, 2023 (MLN): Oil prices ticked up slightly on Wednesday following an unexpected drop in U.S. oil stocks. Brent crude oil added 0.2% to reach $82.86 a barrel, while WTI also increased 0.2% to $76.83 a barrel.
The U.S. Energy Information Administration announced that crude inventories had fallen by 1.7 million barrels during the week ending on Friday, defying the predictions of analysts who had anticipated a build of 700,000 barrels.
The decrease in oil stocks ended a ten-week streak of inventory builds that had prompted concerns about U.S. demand amidst a weak economic backdrop.
Nevertheless, oil prices have remained significantly lower this week following hawkish comments from Federal Reserve Chairman Jerome Powell, which suggested that interest rates could increase more quickly and to a greater degree than expected.
Despite the slight increase in oil prices, Brent crude has fallen 3.6% for the week, reflecting the broader impact of Powell's remarks on global markets.
The outlook for oil prices remains uncertain, with investors closely monitoring the trajectory of the global economic recovery, developments in the COVID-19 pandemic, and the policies of central banks such as the Federal Reserve.
