Oil extended gains on Middle East tension; gains capped by US inventory report

International benchmarks for crude oil continued to advance on Wednesday, 12 June 2024 after the militant group Hamas rejected the ceasefire proposal, stoking fears of a deepening turmoil in the region.

However, gains were capped by another rise in the US commercial crude and gasoline inventory, which signal the softness in summer demand. Meanwhile, the FED decided to keep key lending rates unchanged at Wednesday’s meeting but signaled one rate cut before the year’s end. Speculations that the adjustment would only occur as late as December also tapered the market’s risk appetite.

Brent added 68 cents to close at $82.60/barrel.

WTI gained 60 cents to settle at $78.50/barrel.