The weekly EIA oil inventory data showed a large fall in crude oil stocks.
The crude oil inventories fell by -7.167 billion barrels compared to estimates of -1.272 million barrels
Gasoline stocks were unchanged versus 8-0.1715 million estimate. Distillates showed a build of 1.062 million versus estimates of 0.146 million. The EIA data runs counter to the private survey estimates of a build of crude oil stocks of 3.3 million.
Crude oil prices have surged as escalating tensions in the Middle East fuel concerns over potential supply disruptions. President Trump has vowed to “hit Iran hard,” adding to geopolitical risk and helping drive WTI crude to $85.20, up nearly $6.00 on the day, or about 7.4%. The rally comes just one day after prices fell to $77.88, where buyers emerged at a key swing support level dating back to July 17.