Oil Prices Slip on Rising U.S. Crude Inventories Amid Ongoing Middle East Tensions.
Oil prices declined on Wednesday following data indicating a larger-than-expected increase in U.S. crude inventories. Despite this, crude futures remain up approximately 3% this week, as traders remain vigilant about the escalating conflict in the Middle East.
As of 0917 GMT, Brent crude futures fell 73 cents, or 1%, to $75.31 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 74 cents, also 1%, to $71.00 per barrel. This comes after two days of gains which partially recovered last week’s losses due to easing Middle East supply concerns and weakened Chinese demand.
The latest price dip followed data showing U.S. crude stocks rose by 1.64 million barrels last week, a significant increase compared to analysts’ expectations of a 300,000-barrel rise. The official U.S. government oil inventory report is expected later on Wednesday.
However, market analysts noted that the price impact of higher inventories is tempered by ongoing worries about supply disruptions in the Middle East. The market is on edge as it awaits Israel’s response to Iran’s missile attack, and a lack of significant progress from U.S. Secretary of State Antony Blinken’s recent visit to Israel has added to uncertainty.
Related Posts
Further heightening tensions, Israel confirmed on Tuesday the death of Hashem Safieddine, a top Hezbollah figure and possible successor to the group’s late leader Hassan Nasrallah. This development may contribute to a prolonged market response to the Middle East conflict, with traders cautious about the prospects of a ceasefire.
“The market is bracing for a protracted conflict, with the possibility of a ceasefire remaining uncertain,” said Yeap Jun Rong, a market strategist at IG.
