Crude Oil Prices Rise 0.6% as US Crude Stocks Drop 3.9 Million Barrels

Crude oil price increased in early Thursday trading in Asia, breaking a 3-day losing streak. The rebound came after U.S. data showed a bigger-than-expected drop in crude oil stockpiles, suggesting tighter supply conditions.

Crude Inventory Falls Sharply

According to the U.S. Energy Information Administration (EIA), crude oil inventories dropped by 3.9 million barrels to 422.2 million barrels for the week ending July 11, 2025. This was more than double the 1.8 million barrel drop analysts had predicted, indicating strong demand and tightening supply.

Refinery activity remained high, with 93.9% of available refining capacity in use. Despite the drop in crude stock, gasoline inventories rose by 3.4 million barrels and distillates (like diesel) increased by 4.2 million barrels.

Prices at a Glance

• Brent crude (Sep contract): Up 0.6% to $68.94/barrel
• WTI crude: Up 0.8% to $66.92/barrel

The rise follows a nearly 4% decline earlier this week as markets reacted to President Trump’s delayed response to the Russia-Ukraine war.

Read More: Edible Oil Prices Set to Dip: 5%–6% Drop Expected After Duty Reduction.

Tariff Concerns Keep Investors Cautious

Investors remain nervous about global demand, particularly as U.S. President Trump has signalled that new tariffs could soon be announced for over 150 countries. He previously threatened a 30% tariff on EU imports starting August 1. In response, the EU is preparing to impose tariffs on $84.1 billion worth of U.S. goods if no agreement is reached.

While some progress is seen in U.S.-China trade relations, fears remain that new tariffs could slow economic growth and reduce oil demand.

Conclusion

Oil prices have rebounded thanks to tighter U.S. crude supply, but the market remains on edge. With trade tensions still brewing and tariffs looming, investors are carefully watching global developments that could impact demand and economic stability.

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