US crude oil inventories dropped last week amid continued disruptions in the Strait of Hormuz.
Data released by the Energy Information Administration showed US commercial crude inventories (excluding those in the Strategic Petroleum Reserve) fell by 7.2 million barrels to 404.5 million in the week ending July 24. That is 7 per cent lower than the five-year average at this time of the year.
Refineries were operating at 97.2 per cent of their capacity last week, the EIA said.
Oil levels in the strategic reserve were down to 307.7 million barrels, the lowest since 1983. The US had previously agreed to release 172 million barrels as part of a broader effort by the International Energy Agency to shore up markets amid the Iran war. Altogether, the IEA's 32 members pledged to make 400 million barrels available to the market.
Oil and petroleum from the Middle East continue to face disruptions after renewed hostilities in the Strait of Hormuz, where about 20 per cent of global energy supplies crossed before the Iran war broke out on February 28.
The seven-day moving average for tankers in the strait is at 11, significantly below the rolling average from the same time last year, according to the IMF Port Watch tool.
Brent crude prices had jumped 7.92 per cent to $90.75 a barrel as of 12.30am UAE time on Thursday while US crude rose 6.94 per cent to $84.76 a barrel.
