Oil prices witnessed a slight rise today, Wednesday, in light of the continued tensions in the Red Sea, which weighed on supply in Europe and the Middle East. In parallel, the focus began to turn to the return of crude oil production in key regions in the United States, which affected oil prices globally.
Brent crude settled at $79.92 per barrel, gaining 0.47 percent. Meanwhile, U.S. West Texas Intermediate crude prices rose 0.46 percent settling at $74.71 per barrel.
U.S. production rebounds
In North Dakota, the third-largest oil-producing state in the U.S., some oil output resumed following a shutdown caused by extremely cold weather. The state’s pipeline authority reported that production resumed. However, output remained low, witnessing a decrease of 300,000 barrels per day (bpd). This recovery still played a pivotal role in influencing market sentiments.
Meanwhile, persistent weakness in U.S. gasoline demand emerged as another factor impacting oil prices. Hence, the decline in gasoline consumption has influenced oil prices, contributing to the bearish market sentiment. While U.S. crude stocks experienced a significant drawdown of 6.67 million barrels last week, the surge in gasoline inventories by 7.2 million barrels, according to the American Petroleum Institute, acted as a counterforce. The market awaits official U.S. government data today to provide a clearer picture of the overall inventory situation.
Read: Gold prices rise as investors await U.S. interest rate cuts
