Oil Climbs as US Product Stockpiles Drop and Equities Advance

Group 1 - Oil prices increased following a report indicating a decline in stockpiles at the Cushing storage hub, with Brent trading above $66 per barrel after a 1.8 million-barrel weekly drop was reported [1] - The American Petroleum Institute noted a decrease in oil-product holdings, although it estimated an increase in nationwide crude stockpiles, which remain near seasonal lows [1] Group 2 - Price gains are limited by the overall outlook of ample global supplies, as OPEC+ is increasing production and the US is expected to achieve record output this year [2] - Russian oil exports are nearing a 16-month high, influenced by Ukrainian drone strikes affecting domestic refinery processing [2] Group 3 - There is a noted disconnect between paper pricing and the anticipated surplus in global oil balances, with the market stabilizing in the $65 to $70 range [3] - Goldman Sachs has maintained a bearish outlook on oil, predicting an average daily surplus of about 2 million barrels from this quarter through next year, which is expected to lower prices, with Brent projected to average $56 per barrel in 2026 [3]