Oil prices rise as US inventories fall, summer refinery activity rises

2024-05-09 02:40:23

(MENAFN) On Wednesday, oil prices experienced an uptick following the release of data indicating a larger-than-anticipated decrease in US oil inventories. This decrease was attributed to heightened production activity at refineries ahead of the summer season. Brent crude futures saw a rise of 42 cents, settling at USD83.58 per barrel, while US West Texas Intermediate crude futures climbed by 61 cents, reaching USD78.99 per barrel upon settlement.

The US Energy Information Administration reported a decline in crude inventories by 1.4 million barrels to a total of 459.5 million barrels for the week ending May 3, slightly surpassing analysts’ projections. However, the appreciation of the US dollar tempered the gains in crude oil prices. A stronger dollar typically diminishes demand for oil as it becomes pricier for investors holding other currencies.

Additionally, hopes for a ceasefire in the Gaza Strip exerted downward pressure on oil prices in recent sessions. Analysts suggest that the perceived risk associated with oil declined in tandem with expectations for a de-escalation of tensions in the region. These various factors collectively influenced the trajectory of oil prices, underscoring the complex interplay of supply, demand, geopolitical dynamics, and currency fluctuations in the energy market.

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