Oil slipped on rising US commercial stockpiles, but Middle East tensions temper losses
Oil prices fell on Wednesday after the U.S. Energy Information Administration (EIA) reported a significant increase in US commercial crude inventories. However, concerns over potential supply disruptions amid escalating tensions in the Middle East tempered the decline.
Oil prices fell on Wednesday after the U.S. Energy Information Administration (EIA) reported a significant increase in US commercial crude inventories. However, concerns over potential supply disruptions amid escalating tensions in the Middle East tempered the decline.
Brent crude settled at $76.58/barrel, dropped by $0.60.
WTI decreased by $0.33, closed at $73.24/barrel.
US commercial crude inventories rose by 5.8 million barrels in the week ending October 4, 2024, pushing total stockpiles to 422.7 million barrels. Additionally, the absence of robust economic stimulus from Beijing continues to dampen hopes for a stronger recovery in China’s demand for oil.
Despite the rise in inventories, the market remains cautious, with escalating tensions between Israel and Tehran heightening concerns of a broader conflict in the region that could lead to significant disruptions in global oil supplies.
Written by: Muhammad Hafiz