Oil prices experienced an uptick on Thursday, driven by a positive demand outlook in the United States and a weakening U.S. dollar. Brent crude futures increased by 0.5% to reach $71.12 a barrel, marking their highest point since March 3. Similarly, U.S. West Texas Intermediate crude saw a rise of 0.6%, settling at $67.58 a barrel.
The boost in prices was partly attributed to a significant drawdown in U.S. distillate inventories, including diesel and heating oil, which decreased by 2.8 million barrels last week, far surpassing the expected 300,000-barrel drop. Concurrently, U.S. crude inventories rose by 1.7 million barrels, exceeding predictions.
OPEC’s Positive Outlook
OPEC’s Monthly Oil Market Report for March 2025 maintains a positive outlook, projecting continued robust demand growth into 2026, with an anticipated global increase of 1.4 million barrels per day. The OECD is expected to see modest growth, while non-OECD demand is set for a more substantial increase.
Impact of Dollar Weakness
The dollar’s downward trend since late February has further supported oil price increases, enhancing the purchasing power of countries using other currencies to acquire oil.
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