Oil prices rise on US inventory data, middle east tensions
Date
8/14/2024 8:20:29 AM
(MENAFN) Oil prices experienced a rise in early trading on Wednesday, driven by expectations of reduced U.S. crude and gasoline inventories and heightened concerns about potential disruptions in global oil supplies due to escalating Middle East tensions. By 0009 GMT, brent crude futures had increased by 30 cents to reach USD80.99 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents to USD78.73.
Recent data from the American petroleum Institute (API) revealed a decline in U.S. crude oil and gasoline inventories for the previous week. Specifically, crude inventories decreased by 5.21 million barrels, gasoline stocks fell by 3.69 million barrels, and distillate inventories saw a modest increase of 612,000 barrels. This reduction in inventories could indicate a rise in domestic demand in the U.S., which is the world's largest oil consumer. Official data from the Energy Information Administration is expected later in the day.
In addition to inventory reports, the market is closely monitoring geopolitical developments in the Middle East. Iran has vowed severe retaliation following the recent killing of Hamas political bureau chief Ismail Haniyeh, an act Tehran attributes to Israel. The Israeli government has neither confirmed nor denied involvement in the assassination. In response to the regional tensions, the U.S. Navy has dispatched warships and a submarine to the Middle East to support Israeli defense efforts, adding to market apprehensions about potential impacts on oil supply.
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