Oil prices climbed for the fourth consecutive day on Thursday. U.S. crude oil, heating fuel, and jet fuel stocks are tightening even more as harsh winter conditions hit the United States and travel is poised to ramp up for the holiday season.
Brent crude futures rose 44 cents, or 0.54%, to $82.64 at 0422 GMT, increasing gains of about 2.7% from the previous session. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.63%, to $78.78 a barrel.
Both benchmark contracts jumped Wednesday after government data showed U.S. crude inventories fell much more than analysts had expected, dropping 5.89 million barrels in the week ended Dec.
Inventories of distillates, including heating oil and jet fuel, also declined, defying growth expectations. Jet fuel consumption is expected to increase for the year-end holiday season, supported by the post-COVID boom in travel.
Looking to 2023, global jet demand is expected to continue its steady recovery to 2019 levels as China reopens, which will tighten global crude oil markets and push prices higher.
However, demand concerns from the COVID-19 surge in China and fears of a global recession could keep oil futures in check.
Meanwhile, despite the unexpected decline in US oil stocks, there are those who see gains as exaggerated and those who think demand concerns may prevail over short-term support.
