Oil prices retain their losses amid rising US inventories: Oil prices continued to register losses for the second consecutive
day after an industry report indicated an increase in US crude inventories,
despite expectations that escalating conflicts in the Middle East and ongoing “OPEC+” restrictions might limit these losses.
Topics
Impacts of the Middle East Crisis
American Petroleum Institute
West Texas Intermediate crude remained above the $85 per barrel mark after closing down 1.4% on Tuesday,
while Brent traded close to $89.
According to Oilprice.com, the American Petroleum Institute reported that crude oil inventories
had increased by about 3.03 million barrels last week.
Official government data is expected to be released later on Wednesday.
If the Energy Information Administration confirms the increase in total inventories,
this week will mark the third consecutive week of increases.
The American Petroleum Institute also noted a slight increase
in inventories at the “Cushing” hub and a decrease in gasoline stocks.
Impacts of the Middle East Crisis
Oil prices are still up 19% this year due to “OPEC+” supply cuts and the support provided by
geopolitical tensions across the Middle East are driving prices up.
This week, monthly reports from “OPEC” and the International Energy Agency are expected to provide a
broader outlook on the market, including demand forecasts.
Gao Mingyu, the chief energy analyst at “SDIC Essence Futures Co.” in Beijing, stated,
“The upside risk for oil still lies in geopolitics, especially with the escalating conflict between Israel and Iran,
representing the most significant potential risk.” She added that “the negative impact of rising
oil prices on demand and inflation could be an important trading theme in the future.”
The market is cautiously awaiting Iran’s response to the suspected Israeli attack on its consulate in Syria last week,
with Hezbollah warning that it is prepared for war.
Oil prices retain their losses amid rising US inventories.