Oil Prices Jump on U.S. Inventory Dip

ByIrina Slav– Feb 26, 2025, 2:23 AM CST

oilimage

Crude oil prices reversed a decline from the start of this week, moving higher after the American Petroleum Institute reported the first weekly decline in inventories in over a month.

If the inventory dip gets confirmed today by the Energy Information Administration, the price rise will likely extend towards the end of the week.

‘;
document.write(write_html);
}

At the time of writing, Brent crude was trading at $73.21 per barrel, with West Texas Intermediate at $69.13 per barrel, following the API’s weekly inventory report, which estimated a dip of over 600,000 barrels for the week to February 12. The effect of the report on oil prices was very much a reaction to analyst predictions of a sizable build to the tune of 2.3 million barrels. Some analysts expected an even larger build, at 2.6 million barrels.

Meanwhile, the expectations of the United States and Russia inking a peace deal for Ukraine continued to exert downward pressure on prices as such a deal would lead to the lifting of U.S. sanctions and that would eliminate the uncertainty around Russian exports, as ING analysts wrote in a note.

“Prospects for a peace deal between Russia and Ukraine are improving as the US and Ukraine agree on a minerals deal,” Warren Patterson and Ewa Manthey wrote. “It could be signed later this week. This would take us a step closer to Russian sanctions being lifted, removing much of the supply uncertainty hanging over the market.”

In further bearish news for oil prices, U.S. consumer sentiment was disappointing, slumping to the lowest in eight months with inflation expectations running high. Meanwhile, Germany, Europe’s biggest economy, booked a decline for yet another quarter at the end of 2024.

On the bullish side, U.S. policy towards Iran will continue to provide support for prices although tariffs on trading partners such as China would offset any concern about supply tightening in oil due to the expected negative effect of tariffs on demand for oil.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com

Join the discussion | Back to homepage

 

  • Related Posts

    India’s Industrial Gas Supply Slashed After Qatar Suspends Output

    India’s gas marketing companies have informed industrial customers they would receive lower gas supply, industry sources told Reuters, after Qatar announced on Monday it would halt LNG production due to…

    Oil Prices Surge to $84 as Supply Risk Becomes Real

    Oil prices jumped by 8% early on Tuesday as markets brace for a prolonged conflict in the Middle East and fears of supply disruptions began to materialize.  As of 7:00…

    Have You Seen?

    US Natural Gas Futures Leap 6% as Middle East Conflict Disrupts Global Supplies

    • March 3, 2026
    US Natural Gas Futures Leap 6% as Middle East Conflict Disrupts Global Supplies

    US Considering Oil Tanker Insurance Support to Ease Middle East Crude Shipments, Sources Say

    • March 3, 2026
    US Considering Oil Tanker Insurance Support to Ease Middle East Crude Shipments, Sources Say

    India’s Industrial Gas Supply Slashed After Qatar Suspends Output

    • March 3, 2026
    India’s Industrial Gas Supply Slashed After Qatar Suspends Output

    India’s gas cuts signal wider Asian pain as Gulf LNG crisis worsens

    • March 3, 2026
    India’s gas cuts signal wider Asian pain as Gulf LNG crisis worsens

    India’s gas cuts signal wider Asian pain as Gulf LNG crisis worsens

    • March 3, 2026
    India’s gas cuts signal wider Asian pain as Gulf LNG crisis worsens

    U.S. Not Planning To Tap Strategic Petroleum Reserve Immediately

    • March 3, 2026
    U.S. Not Planning To Tap Strategic Petroleum Reserve Immediately

    Asian Refiners Mull Slashing Crude Processing as Iran War Threatens Supply

    • March 3, 2026
    Asian Refiners Mull Slashing Crude Processing as Iran War Threatens Supply

    European Gas Prices Soar 30% as Qatar Halts LNG Output

    • March 3, 2026
    European Gas Prices Soar 30% as Qatar Halts LNG Output

    Oil Prices Surge to $84 as Supply Risk Becomes Real

    • March 3, 2026
    Oil Prices Surge to $84 as Supply Risk Becomes Real

    Middle East conflict underlines need for UK ‘to maximise existing reserves’

    • March 3, 2026
    Middle East conflict underlines need for UK ‘to maximise existing reserves’