Oil prices jump after Ukraine strikes Russian oil refineries

Environment

A view of an oil well at Arab Desert in Jebel Dukhan, Bahrain on March 4, 2024.
Nurphoto | Nurphoto | Getty Images

Crude oil futures were jolted out of their recent slump Wednesday after industry data showed falling U.S. crude inventories and Ukraine attacked Russian oil refineries again.

The West Texas Intermediate contract for April gained $1.16, or 1.5%, to $78.72 a barrel. The Brent contract for May added $1.13, or 1.38%, to $83.05 a barrel.

U.S. crude and the global benchmark have been on a recent losing streak as traders worried about demand in China and robust supply in the Americas, particularly the U.S.

U.S. crude inventories fell by 5.5 million barrels last week, according to data from the American Petroleum Institute. The drop in crude stockpiles is an indication of strong demand. The U.S. Energy Information Administration will release official data later this morning.

And Ukraine launched a series of drone strikes on Russian oil infrastructure this week, a reminder that the war poses a threat to crude oil production and fuel supplies.

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