Oil Prices Surge as Crude Inventories Decline and Inflation Concerns Rise

Crude oil prices rose as both the Energy Information Administration (EIA) and the American Petroleum Institute (API) reported significant inventory draws. The EIA reported a decline of 2.1 million barrels in crude inventories, while the API estimated a larger draw of 5.25 million barrels. Additionally, the EIA reported inventory declines in gasoline and middle distillates. Despite the recent dip, oil prices remain elevated, which could lead to higher gasoline and fuel costs, potentially accelerating inflation. The Federal Reserve's decision on interest rates may be influenced by the oil price jump and its impact on inflation.