Oil closes higher on demand optimism

Oil drilling rigs

Oil prices rose today, March 1, following US inventory data and optimism about demand.

US Energy Information Administration data revealed that oil inventories rose by 1.2 million barrels in the week ended Feb. 24, below expectations of 1.7 million barrel increase.

Gasoline inventories in the US decreased by 0.9 million barrels, while distillate stocks rose by 200,000 barrels.

Investors are optimistic about demand from China after data showed that the manufacturing purchasing managers’ index in the world’s second largest economy rose to the highest level since April 2022.

Russia also began reducing its crude oil production by 500,000 barrels per day, starting this month, as part of the response to Western sanctions related to the invasion of Ukraine.

Brent crude rose 1%, or 86 cents, to close at $84.31 a barrel. WTI crude gained 0.8%, or 64 cents, to reach $77.69 a barrel.