Oil prices rally on geopolitical tensions; U.S. crude inventories fall 3.06M barrels

Oil prices climbed after EIA reported U.S. crude inventories dropped 3.06 million barrels to 412.5 million in the week ending Oct. 16, 2026. Supply concerns tied to geopolitical tensions are supporting the rally. Higher oil often pressures equity indices and boosts USD, while energy sector equities and oil futures benefit directly from sustained price strength.