Oil prices increase for 3rd consecutive session after decline in US crude inventories
(MENAFN) Oil prices increased for the third consecutive session on Thursday, following government data that revealed a significant decline in U.S. crude inventories, helping prices recover from the multi-month lows reached earlier this week. brent crude futures climbed by 23 cents, or 0.3 percent, to USD78.56 a barrel as of 0017 GMT, while U.S. West Texas Intermediate crude rose by 29 cents, or 0.4 percent, to USD75.52.
Earlier in the week, Brent crude hit its lowest level since early January, and West Texas Intermediate crude fell to its lowest point since February, driven by fears of a potential recession in the United States and a substantial global stock market sell-off. Last week, U.S. crude inventories dropped for the sixth consecutive week, decreasing by 3.7 million barrels to 429.3 million barrels, significantly more than the 700,000 barrels anticipated by analysts in a poll.
Investors are still assessing the supply situation after the U.S. Energy Information Administration reported a production increase of about 100,000 barrels per day, reaching a record 13.4 million barrels per day for the week ending August 2. Despite the steady supply, concerns have risen over potential disruptions from the Middle East following the killings of senior leaders from the Hamas movement and the Lebanese Hezbollah militia, sparking fears that Iran might launch retaliatory strikes against Israel.
Although there have been no direct impacts on supplies yet, attacks on ships in the Red Sea have led tankers to take longer routes, keeping more oil at sea for extended periods. Additionally, Libya's National Oil Corporation declared force majeure at the Sharara oil field, citing protests that have gradually reduced production, according to an official statement.
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