It may seem counterintuitive, but as more U.S. crude oil comes onto the market, it’s helping to push domestic prices higher.
The industry has been innovating ways to move millions of barrels of shale oil from the center of the country to coastal refineries, and its efforts are paying off.
Government inventory data Wednesday showed the steepest two-week drop in crude inventories in 30 years. Commercial oil inventories fell 9.9 million barrels from the week earlier, on top of a 10 million-barrel decline last week. West Texas Intermediate crude futures for August delivery zipped higher as a result, settling up $2.99 at $106.52 a barrel, its highest close since March 2012.