Key facts
- US oil drilling activity has increased for six consecutive weeks.
- The number of active US oil rigs rose by two to 431.
- Crude futures have surged 35% since late February.
- Crude futures have averaged nearly $98 per barrel.
- US crude oil inventories fell by 9.119 million barrels.
- US gasoline inventories also decreased.
- Brent and WTI crude oil prices traded lower.
- India raised domestic LPG prices by Rs 29 per 14.2-kg cylinder.
- The new LPG price in Delhi is Rs 942.
- This is the second LPG price hike since the US-Iran conflict began.
- Estimated LPG supply costs are now between Rs 1,600-1,700.
US oil drilling activity has extended its gain for a sixth consecutive week, with the number of active oil rigs increasing by two to a total of 431. This sustained expansion is attributed to a substantial 35% surge in crude futures prices since late February, which have averaged close to $98 per barrel.
In parallel, US crude oil inventories experienced a significant decline, falling by 9.119 million barrels, a figure that substantially surpassed market expectations. Gasoline stocks also recorded a decrease. These substantial inventory draws, coupled with alerts regarding low Organization for Economic Co-operation and Development (OECD) stockpiles, have not prevented a downturn in crude oil prices, with both Brent and West Texas Intermediate (WTI) benchmarks trading lower.
Meanwhile, India has again raised its domestic cooking gas (LPG) prices. The price of a 14.2-kg cylinder has increased by Rs 29, bringing the new price in Delhi to Rs 942. This marks the second price hike for LPG since the commencement of the US-Iran conflict. The estimated supply costs for LPG are now reported to be between Rs 1,600 and Rs 1,700, driven up by escalating import costs.