Crude oil and gasoline prices surged, with crude hitting a 2-week high and gasoline reaching a 2.5-week high. This was fueled by EIA inventory drops and strong global manufacturing activity. However, gains were capped by a rise in the dollar index. Signs of robust manufacturing activity in the US and Eurozone are boosting energy demand and crude prices.

Doubts over Russian-Ukrainian war negotiations supported oil prices, with Russia seeking a say in Ukraine’s security arrangements. OPEC’s decision to increase production gradually over the next few years is bearish for crude prices. However, a decrease in oil stored on tankers is bullish for oil prices, suggesting tightening supply.

US crude oil inventories were below seasonal averages, with gasoline and distillate inventories also showing declines. US crude oil production remains high but just below record levels. The number of active US oil rigs has remained steady, slightly above recent lows but significantly below previous highs.

Read more at Yahoo Finance: Crude Oil Rallies on Tighter Inventories and Signs of Stronger Energy Demand