Crude Prices Surge on U.S. Inventory Drop and Russian Export Fears

Oil prices rose on Friday, buoyed by renewed optimism over U.S.-EU trade negotiations, a larger-than-expected draw in U.S. crude inventories, and growing concerns over potential restrictions on Russian gasoline exports.

Benchmark Brent crude gained over 1%, while WTI crude futures advanced following a 3 million barrel drop in U.S. crude stockpiles, signaling stronger demand and tightening supply. Distillate inventories also remain tight not only in the U.S., but across key regions in Europe and Asia, intensifying upward pressure on refined product prices.

Analysts noted that even as Chevron explores increased output from Venezuela, the global supply picture remains constrained. Strong refinery margins and persistent bullish sentiment across oil markets continue to support elevated crude prices.

Meanwhile, reports suggest that Russia is considering fresh limitations on gasoline exports in a bid to stabilize its domestic market, further compounding global fuel supply uncertainty as the summer demand season peaks.

With diplomatic signals pointing toward easing transatlantic trade tensions, market participants are watching closely for any signs of broader energy cooperation or policy shifts that could impact future oil flows.

Ruth Forbes

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