Oil prices held steady on Thursday following multi-month highs reached a day earlier, driven by U.S. sanctions on Russia and a larger-than-expected drop in U.S. crude stocks.
Brent crude futures fell 23 cents, or 0.3%, to $81.80 per barrel by 0915 GMT, after rising 2.6% in the previous session to their highest level since July 26, 2022. U.S. West Texas Intermediate (WTI) crude futures declined 16 cents, or 0.2%, to $79.88 a barrel, following a 3.3% gain on Wednesday to their highest since July 19, 2022.
Data from the Energy Information Administration (EIA) showed U.S. crude oil inventories dropped by 2 million barrels last week, exceeding analysts’ expectations of a 992,000-barrel decline. The decrease, attributed to rising exports and falling imports, marked the lowest inventory levels since April 2022.
The decline in U.S. stocks adds to a tightening global supply outlook. Broader U.S. sanctions imposed on Russian oil producers and tankers have disrupted supply chains, prompting Russia’s key customers to seek alternative sources and driving up shipping costs.
On Wednesday, the Biden administration announced hundreds of additional sanctions targeting Russia’s military-industrial complex and evasion networks.
