Oil rises on tight U.S. stocks as winter blast hits

Oil prices climbed for a fourth straight day on Thursday with U.S. crude, heating oil and jet fuel stocks growing tighter just as a wintry blast hits the United States and travel is set to soar for its holiday season, Reuters reported.

Brent crude LCOc1 futures gained 44 cents, or 0.54%, to $82.64 at 0422 GMT, extending gains of around 2.7% from the previous session. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 49 cents, or 0.63%, to $78.78 a barrel.

Both benchmark contracts jumped on Wednesday after government data showed U.S. crude inventories fell by much more than analysts had expected, posting a drop of 5.89 million barrels for the week ending on Dec. 16.

Distillate stocks, which include heating oil and jet fuel, also declined, going against expectations for a build

The falling stockpiles come as demand for heating oil is set to soar with a powerful winter storm hitting the United States, with sub-zero wind chills expected as far south as Texas and record-breaking lows forecast for Florida and eastern states.

Jet fuel consumption is also expected to pick up with a post-COVID boom in travel for the end-of-year holiday season.