Oil slid on swelling US crude stockpile, tension in the Middle East provided support
The US Energy Information Administration (EIA) reported an increase in crude inventories of 5.5 million barrels last week, attributed to rising domestic production and robust imports.
Oil prices slipped on Wednesday following the release of data indicating a larger-than-expected increase in US crude inventories despite a rebound in refining activity. Nonetheless, futures remain approximately 2% higher for the week, largely fuelled by ongoing concerns over instability in the Middle East.
Brent crude fell by $1.08 or 1.42% to close at $74.96/barrel.
WTI decreased by $0.97 or 1.35% to settle at $70.77/barrel.
The US Energy Information Administration (EIA) reported an increase in crude inventories of 5.5 million barrels last week, attributed to rising domestic production and robust imports. Additionally, a strengthening US dollar has exerted downward pressure on oil prices, making dollar-denominated crude more expensive for buyers using other currencies.
Despite these bearish indicators, persistent worries about potential supply disruptions in the Middle East—fueled by stalled ceasefire negotiations—continue to provide a floor for oil prices.
Written by: Muhammad Hafiz