Oil prices face pressure amid economic and geopolitical influences: Oil prices stabilized with traders optimistic about expectations indicating a decline in US inventories
and tensions in the Middle East on the one hand, and expectations of increased supplies on the other.
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American Petroleum Institute
The global benchmark Brent crude oil is trading below $80 per barrel after its decline yesterday,
Tuesday, while West Texas Intermediate crude oil was trading above $74.
The American Petroleum Institute reported that nationwide inventories fell by about 7 million barrels last week,
including a decline in Cushing, Oklahoma. Official numbers are scheduled to be released later on Wednesday.
Tensions in the Middle East
While oil markets focus on tensions in the Middle East, geopolitical risks have heightened on another front
after Ukrainian drone attacks on oil facilities on Russia’s Baltic Sea coast, raising the stakes in the two-year-old war, Saxo Bank said.
This comes at a time when oil price fluctuations continue, with increasing tensions and weather problems in the United States causing production disruptions.
Some analysts reported that although tensions in the Red Sea continued to rise with the US and UK launching new strikes,
overall risk sentiment was positive as markets began to estimate a better economic outlook in the wake of recent strong economic data.
Oil price fluctuations
Analysts confirmed that the new strikes on Houthi-controlled areas increase the risks of the conflict,
explaining that the continued reduction in production by the OPEC+ coalition countries boosts crude oil prices.
They pointed to gains in crude oil futures as market sentiment increased bullishly.
However, oil is facing some resistance after Libya’s National Oil Corporation said flows from the Sharara field,
which previously pumped about 270,000 barrels per day, will resume after a three-week hiatus.
Oil has faced stability challenges this year, rising and falling in alternating weeks.
This oscillating pattern has developed while balancing the impact of tensions across the Middle East.
Oil prices face pressure amid economic and geopolitical influences