Oil Prices Surge on Massive US Inventory Draw and Rising Geopolitical Risks

Oil prices extended their gains as WTI and Brent reacted to a massive across-the-board draw in US energy inventories. The US Department of Energy (DOE) reported a crude inventory decline of 9.014 million barrels, marking the largest draw since September 2025. Significant declines in gasoline and distillate stocks further reinforced the bullish sentiment, confirming earlier data from the API. Geopolitical tensions are also providing a strong tailwind as nuclear negotiations between the US and Iran have reportedly stalled. Analysts at RBC Capital Markets noted increased military movements in the Strait of Hormuz, reintroducing a high risk premium to the market. This combination of tightening physical supply and heightened regional instability offers robust fundamental support for higher crude prices.