Oil Futures Rise Amid Falling U.S. Stockpiles and New Tariffs on India

Oil futures climbed approximately 1% following a larger-than-expected decline in U.S. crude inventories, signaling robust demand ahead of the Labor Day travel weekend. Stockpiles dropped by 2.4 million barrels to 418.3 million for the week ended August 22, surpassing analyst expectations of a 1.9 million-barrel drawdown.

"The gasoline demand number is supportive and shows people are getting ready to travel," noted Phil Flynn, senior analyst at Price Futures Group. "This marks the crescendo of the summer driving season."

Meanwhile, new 50% U.S. tariffs on Indian oil imports took effect Wednesday, targeting New Delhi's purchases of Russian crude. The MOVE could disrupt global supply chains if India curbs Russian imports, forcing Moscow to either cut production or scramble for alternative buyers. Such disruptions may further tighten the oil market.