Oil prices fall amid rising U.S. inventories, Middle East tensions
Date
6/27/2024 4:36:10 AM
(MENAFN) Oil prices declined in early Asian trading on Thursday following a surprising increase in US crude inventories, heightening fears of a potential slowdown in demand from the world's largest oil consumer. However, concerns that an escalation of the Gaza conflict could disrupt Middle Eastern oil supplies limited the extent of the price drop. By 0028 GMT, brent crude futures had fallen by 30 cents, or 0.4 percent, to USD84.17 per barrel, while US West Texas Intermediate (WTI) crude futures declined by 32 cents, or 0.4 percent, to USD80.58 per barrel. This follows a slight increase in both benchmarks during the previous session on Wednesday.
The US Energy Information Administration reported an unexpected rise in the country's crude oil inventories by 3.6 million barrels last week, contradicting analysts' predictions of a 2.9 million barrel decrease. Gasoline stocks also increased by 2.7 million barrels, whereas analysts had expected a reduction of one million barrels.
In the Middle East, rising cross-border tensions between Israel and the Lebanese Hezbollah group have intensified fears of a full-scale war. Turkish President Recep Tayyip Erdogan expressed solidarity with Lebanon and urged regional countries to support Beirut amid the escalating situation. These geopolitical concerns have added a layer of uncertainty to the oil markets, influencing price movements despite the bearish inventory data from the US.
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