2025.03.1219:38:00UTC+00Oil Futures Settle Sharply Higher After Inventory Data

Oil prices moved higher on Wednesday after data showed a smaller than expected increase in crude oil inventories in the U.S. in the week ended March 7th.

Data showing a smaller than expected rise in U.S. consumer prices, and a subdued dollar contributed as well to the rise in oil prices.

However, worries about tariffs and their possible impact on global economic growth and oil demand outlook limited the commodity's upside.

West Texas Intermediate Crude oil futures for April closed higher by $1.43 or 2.16% at $67.68 a barrel.

Brent crude futures were up $1.35 or 1.94% at $70.91 a barrel a little while ago.

Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. increased 1.4 million barrels last week, after climbing by 3.6 million barrels in the previous week. Oil inventories were expected grow by 2.1 million barrels.

At 435.2 million barrels, U.S. crude oil inventories remain about 5% below the five-year average for this time of year.

Meanwhile, the report said gasoline inventories tumbled by 5.7 million barrels last week but remain 1% above the five-year average for this time of year.

Distillate fuel inventories, which include heating oil and diesel, also fell by 1.6 million barrels last week and are about 5% below the five-year average for this time of year, the EIA said.

The OPEC said today that it is maintaining its oil production and economic growth outlook for 2025 and 2026. The group said that it expects oil demand to grow by 1.4 million barrels a day this year and in 2026.