Oil rates increase over robust demand indicators in US

(MENAFN) Oil rates continued their upward trajectory on Wednesday, buoyed by robust demand indicators in the US, the world's largest oil consumer, suggesting a tightening in US markets as the summer vacation season approaches.

The international benchmark Brent crude traded at $88.55 per barrel at 10:30 a.m. local time (0730 GMT), marking a 0.15% increase from the previous session's closing price of $88.42 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) traded at $83.46 per barrel at the same time, reflecting a 0.12% rise from the previous session's close of $83.36 per barrel.

Late on Tuesday, the American Petroleum Institute (API) reported an estimated decrease of 3.23 million barrels in US crude oil inventories, contrary to market expectations of a build of 1.8 million barrels. This data suggests a tightening in US markets as the summer travel season approaches.

Market analysts anticipate that if official data from the Energy Information Administration (EIA), expected later on Wednesday, confirms a reduction in gasoline and oil stockpiles, oil prices may see further increases.

Amidst these market dynamics, the longstanding Israeli-Palestinian conflict continues to escalate, contributing to heightened geopolitical risks in the Middle East.

Israel persists in its unyielding assault for the 201st consecutive day, despite a UN Security Council resolution urging an immediate cessation of hostilities in the besieged Gaza Strip.



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