(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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