Oil continued its gains on Thursday after Israel rejected Hamas’ ceasefire offer, while a weaker dollar supported prices.
Brent crude futures were up 30 cents, or 0.4%, at $79.51 a barrel at 04:00 GMT. WTI crude oil futures rose 26 cents, or 0.4%, to $74.12 a barrel.
While limited progress has been made in negotiations to end the Gaza conflict, rising tensions in the Middle East have kept the market on edge since October.
A Palestinian Hamas delegation led by Khalil Al Hayya was due to travel to Cairo on Thursday for ceasefire talks with Egypt and Qatar. Netanyahu rejected Hamas’ latest offer for a ceasefire and the return of hostages held in the Gaza Strip, but Blinken says there is still room for negotiation to reach an agreement.
On the demand side, a stronger-than-expected decline in U.S. gasoline and middle distillate inventories also supported the oil market, while the weakening of the U.S. dollar also supported oil prices on Thursday as it made crude cheaper for traders holding other currencies.
According to Energy Information Administration (EIA) data, distillate stocks decreased by 3.2 million barrels to 127.6 million barrels, despite expectations for a decrease of 1 million barrels. Gasoline stocks fell 3.15 million barrels, compared with analysts’ forecasts for a 140,000-barrel increase.
Refinery margins strengthened following falling inventories. Strengthening refinery margins increases operating rates and provides the opportunity to benefit from strong margins while supporting crude oil by strengthening crude oil demand.
The decline in gasoline stocks and the 13 percent annual increase in US oil exports to a record level of 4.06 million barrels per day in 2023 prove that the demand for crude oil is strong.
