Oil futures ticked up on Thursday as fresh drone strikes on oil facilities in Iraqi Kurdistan and expanded Israeli strikes in Syria deepened supply risk in the Middle East while a sharper than expected draw in United States crude inventories pointed to resilient demand.
International benchmark Brent crude was last up to 68.05 dollars per barrel from 68.03 dollars at the previous settle. United States benchmark West Texas Intermediate rose to 65.50 dollars per barrel from 65.44 dollars.
Regional security jitters drove much of the tone. The Counter Terrorism Unit of the Kurdish Regional Government reported that three oil fields in Duhok were hit by drones early Wednesday and that the Hunt field was also targeted later in the day.
No casualties or major damage were reported but Washington condemned the attacks and warned they threaten Iraqs economy and long term energy investment. Separately Israeli strikes hit targets in Syria including the presidential compound and General Staff headquarters in Damascus as well as reported positions in Latakia province. Israeli military sources signaled that cross border clashes could extend for days. The escalation reinforced fears around supply from a region that hosts a significant share of global reserves.
Demand signals from the United States added support. Energy Information Administration data showed commercial crude stocks fell by about 3.9 million barrels to 422.2 million in the week ended July 11 well above expectations for a draw of roughly 1.8 million. Strategic petroleum reserves slipped by three hundred thousand barrels to 402.7 million.
Gasoline inventories climbed by 3.4 million barrels to 232.9 million suggesting refiners are running to meet transport demand. United States crude production eased by ten thousand barrels per day to about 13.37 million while imports rose by 366 thousand barrels per day to 6.38 million and exports increased by 761 thousand barrels per day to 3.52 million over the same period.
In its Short Term Energy Outlook dated July 8 the EIA projected United States crude output will average 13.37 million barrels per day in 2025. The combination of falling stocks and a slight dip in production against steady demand helped reinforce the modest price lift.
