Global oil prices rose on Wednesday as market optimism grew over sustained demand and a larger-than-expected decline in U.S. distillate inventories.
Brent crude futures increased by 34 cents (0.5%) to $71.12 per barrel by 07:45 GMT, marking their highest level since March 3. U.S. West Texas Intermediate (WTI) crude also gained 42 cents (0.6%), reaching $67.58 per barrel. Meanwhile, the OPEC basket of twelve crude blends was priced at $74.12 per barrel on Tuesday, up from $73.65 the previous day.
According to OPEC’s Monthly Oil Market Report for March 2025, global oil demand is projected to grow by 1.4 million barrels per day (mb/d) in 2026, maintaining the forecast from the previous month. While the Organization for Economic Co-operation and Development (OECD) countries are expected to see modest demand growth of 0.1 mb/d, the bulk of the increase—1.3 mb/d—is projected to come from non-OECD regions, particularly emerging economies.
JPMorgan analysts reinforced this positive outlook, noting that U.S. oil demand remains healthy despite a decline in air travel passenger volumes. They reported that global oil demand averaged 101.8 million barrels per day, reflecting an annual increase of 1.5 million bpd.
A significant factor in the oil price increase was a sharper-than-expected drop in U.S. distillate inventories, which include diesel and heating oil. Government data showed a 2.8 million-barrel decline last week, far exceeding the 300,000-barrel draw predicted by analysts in a Reuters poll.
However, U.S. crude inventories rose by 1.7 million barrels, surpassing the expected increase of 512,000 barrels.
A weakening U.S. dollar also contributed to the rise in oil prices. Since late February, the dollar has been on a downward trend, making crude oil—which is priced in dollars—cheaper for international buyers, thereby supporting demand.
With strong demand projections and market dynamics favoring higher prices, analysts suggest oil could maintain its upward momentum in the near term. However, factors such as global production levels, economic trends, and geopolitical developments will continue to influence price movements.
