Strong exports caused U.S. crude inventories to plummet by 7 million barrels, and oil prices rebounded after hitting six-month lows

Strong exports caused U.
S.
crude inventories to plummet by 7 million barrels, and oil prices rebounded after hitting a six-month low;

Oil prices turned from a decline to a rise of about 1.
5 percent
on Wednesday after hitting a six-month low.
Brent crude futures settled at $93.
65 a barrel, up 1.
42 percent
.
Earlier in the day, recession fears led the indicator crude to hit its lowest since February at $91.
51;

The sharp drop in U.
S.
crude inventories overshadowed fears
of increased Russian production and exports, as well as a recession.
U.
S.
Energy Information Administration (EIA) said on Wednesday that crude inventories plunged by 7.
1 million barrels to 425 million barrels in the week ended Aug.
12, compared with an estimated decrease of 275,000 barrels
.
U.
S.
crude exports reached a record 5 million b/d, and U.
S.
crude prices were significantly lower than Brent crude oil, boosting buying from overseas buyers
.
U.
S.
gasoline inventories fell by 4.
6 million barrels last week versus an estimated 1.
1 million barrel decline, a sign of strong demand;

Price Futures analyst Phil Flynn said: "People had expected it to be a friendly report and indeed overall
.
Some demand disruption fears in the market appear to have eased";

Russia began to gradually increase oil production after encountering sanctions-related restrictions, and raised its production and export forecasts until the end of 2025 as Asian buyers increased purchases, according to a Ministry of Economy document.

Goldman Sachs said that if Iranian crude returns to the market, Iranian crude oil production is expected to increase by an average of about 500,000 barrels per day next year, and the forecast for Brent crude prices in 2023 will be lowered by $5 to $10/b from $125/b
.