US crude stocks fell by 328k barrels last week, exceeding expectations, while US-Iran tensions and shipping risks support prices.
Oil prices rose for a fourth straight session Wednesday, driven by escalating US-Iran tensions and concerns over potential disruptions in the Strait of Hormuz. President Donald Trump indicated no talks were underway with Tehran and suggested additional sanctions could be announced this week, adding to market uncertainty.
US crude inventories declined by 328k barrels last week, surpassing forecasts for a 74k-barrel draw, according to industry data. Stocks at the Cushing, Oklahoma hub dropped by 1.4m barrels, while gasoline inventories rose by 1.1m barrels and distillates fell by 2.8m barrels. Diesel crack spreads hit a record $100 per barrel amid refining constraints and supply disruptions.
Reduced vessel traffic through the Strait of Hormuz and record-high diesel spreads further tightened the market, supporting short-term price gains. The EIA will release its official inventory report later today.