Oil prices fall amid rising U.S. crude inventories, Middle East diplomacy
Date
8/21/2024 8:38:23 AM
(MENAFN) Oil prices experienced a slight decline in early Wednesday trading, influenced by reports of increasing U.S. crude inventories and the potential easing of Middle East tensions following diplomatic efforts in the region. brent crude futures dropped by 9 cents, or 0.1 percent, to USD77.11 per barrel by 0340 GMT, while U.S. West Texas Intermediate crude saw a decrease of 12 cents, or 0.2 percent, settling at USD73.05 per barrel. The downward movement in oil prices came after the American petroleum Institute reported a rise in U.S. crude oil inventories by 347,000 barrels last week, suggesting a potential surplus in supply that could exert downward pressure on prices. Despite the increase in crude stocks, gasoline inventories fell by 1.043 million barrels, and distillate stocks decreased by 2.247 million barrels, indicating a mixed picture of supply and demand dynamics in the U.S., the world's largest oil producer and consumer.
Adding to the market's cautious sentiment was the conclusion of U.S. Secretary of State Antony Blinken's visit to the Middle East, where efforts were made to mediate a ceasefire in the ongoing conflict in Gaza. Blinken, along with mediators from Egypt and Qatar, expressed optimism about a U.S. "bridge-the-gaps proposal" aimed at narrowing the differences between the conflicting parties in the 10-month-old war. The possibility of a diplomatic resolution in the region contributed to the easing of geopolitical risks, which often influence oil prices. As the market awaited the U.S. government's official inventory estimates, scheduled for release at 10:30 a.m. local time on Wednesday, the combination of rising crude supplies and the prospect of reduced Middle East tensions kept oil prices on a downward trend.
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