Oil prices dip as US crude stocks rise
HOUSTON: Oil prices were, however, restrained on Wednesday by higher than expected stockpile in US crude and reduced concerns of a broader conflict in the Middle East that could affect supply from a big oil region.
Brent crude futures fell 41 cents, or 0. 5%, to $80. 60 a barrel by 1436 GMT. West Texas Intermediate for US delivery declined by 55 cents, or 0. 7%, to $77. 77 per barrel.
Domestic crude supplies increased by 1. 4 million barrels, in contrast to estimates of a 2. 2 million barrel drop, according to the data from US Energy Information Administration. Stocks of gasoline and distillate decreased in the U.S more sharply than predicted. The primary industry statistics offered on Tuesday by the American Petroleum Institute suggested a 5. But last week it plummeted by 21 million barrels.
Brent had gained an impressive of more than 3% on Monday making it five consecutive days of gains and was closing at $82. 30 A barrel, following a seven-month low of $76. 30 at the beginning of last week.
Iran had threatened an severe reaction to the assassination of the leader of hamas earlier last month. Three of Iran’s most senior figures have declared that only a ceasefire in Gaza would stop Iran from striking back against Israel for the assassination.
Even to this day, Israel has not admitted or refuted their role in the same. In response to Iran the United States Navy has placed destroyers and a submarine for orientation in the Middle East.
Tighter supplies are well priced in,” said Dennis Kissler, Senior Vice President of trading at BOK Financial. Among factors that have limited price gain in the oil market since June, the IEA lowered on Tuesday its forecast for demand growth for oils in 2025 due to a declined Chinese consumption rate. That followed cuts to expected demand for 2024 made by the Organization of Petroleum Exporting Countries for similar reasons.
This is after a recent barrage of negative performance forecasts has dampened prospects of China’s economic performance in the month of July.