Oil Prices Rise on Inventory Draw, Geopolitical Supply Fears

Oil prices climbed over 1% on Wednesday, with Brent crude approaching $96 per barrel, as falling U.S. fuel inventories and persistent Middle East supply concerns provided support. West Texas Intermediate (WTI) crude was trading at $92.25 per barrel, up $0.97, while Brent crude traded at $95.75, up $0.96, according to midday live price data.

The U.S. Energy Information Administration (EIA) reported a drawdown in commercial fuel stocks, intensifying supply fears. According to EIA data released Wednesday, U.S. crude oil inventories decreased by 900,000 barrels for the week ending April 10. A more significant draw was seen in gasoline inventories, which fell by 6.3 million barrels, while distillate stockpiles dropped by 3.1 million barrels.

Total product supplied, a proxy for demand, averaged 20.6 million barrels per day over the last four weeks, up 5.6% from the same period last year, the EIA data showed. Distillate inventories are now 6% below the five-year average for this time of year.

Geopolitical tensions continued to underpin the market. According to a separate report from OilPrice.com, South Korea has secured 273 million barrels of Middle Eastern and Kazakh crude that will not transit the Strait of Hormuz, a key chokepoint. The move highlights ongoing efforts by major importers to insulate themselves from supply disruptions related to the Iran war. The country also secured 2.1 million tons of naphtha.

In its latest Short-Term Energy Outlook, the U.S. Energy Information Administration boosted its 2026 Brent crude oil price projection to $96 per barrel, Rigzone reported.

For Bakken operators, sustained prices above $90 per barrel for WTI provide a strong economic signal for continued drilling and completion activity in North Dakota. The strength in gasoline and distillate demand reported by the EIA supports refiners' margins for Bakken crude. However, the midday live data showed the Bakken differential to WTI as undefined, indicating potential local pricing volatility or a lack of clear benchmark settlement.

The market remains sensitive to inventory data and geopolitical developments. The contrast between the EIA's reported crude draw and the American Petroleum Institute's earlier estimate of a 6.1-million-barrel build contributed to price volatility earlier in the week. The focus on secure supply routes, as demonstrated by South Korea's deal, suggests global buyers are preparing for prolonged instability, which could keep a floor under prices beneficial to Bakken production.