Oil futures are up by about 1% after U.S. crude oil inventories showed a larger-than-expected fall ahead of the busy Labor Day travel weekend.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For the week ended August 22, U.S. crude oil inventories fell by 2.4 million barrels to 418.3 million barrels. Analysts were expecting a drop of 1.9 million barrels.
“The gasoline demand number is supportive and shows people are getting ready to travel over the Labor Day weekend,” said Price Futures Group senior analyst Phil Flynn. “This is the crescendo of the summer driving season, also the last big hurrah for the summertime gasoline blend.”
U.S. Tariffs on India Could Lead to Higher Oil Prices
On Wednesday, President Trump’s 50% tariffs went into effect. Trump imposed the tariffs as a punishment for the country buying Russian oil, indirectly supporting Russia’s attacks on Ukraine.
If India decides to halt Russian oil purchases, it could result in higher prices. This is because Russia would have to either reduce its production or scramble to find alternative buyers. Supply chain disruptions are also a risk if Russia is unable to fill the gap from lost Indian demand.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.