Oil prices climbed to weekly highs following a drop in U.S. stockpiles, adding inflationary pressure and complicating fiscal room for energy-importing nations.

The latest data showed a marked drawdown of inventories at the Cushing hub in Oklahoma, reinforcing the perception of tighter supply. In the week ending October 3, crude holdings at Cushing fell by about 763,000 barrels. Meanwhile, fuel inventories — especially in key refined product categories — also registered declines.

That said, U.S. commercial crude stocks overall rose by 3.7 million barrels in the same reporting period, exceeding expectations. The aggregate build in crude stockpiles adds a more complicated layer to the market narrative.

Against that backdrop, OPEC+ opted for a conservative production increase for November of 137,000 barrels per day — a move modest enough to ease fears of oversupply but also signalling restraint from aggressively stepping up output. That restrained approach helped lend support to price momentum in recent sessions.

Markets reacted to the combination of tighter flows through Cushing and the cautious output hike as a justification for more upside in oil benchmarks. Brent crude advanced by about 0.7 per cent, while U.S. West Texas Intermediate rose approximately 0.8 per cent over comparable intervals. Some traders regarded the Cushing depletion as more signal than the broader …