Oil prices fall amid rising U.S. inventories, Middle East diplomacy
Date
8/21/2024 9:01:52 AM
(MENAFN) Oil prices experienced a slight decrease in early trading on Wednesday, driven by new estimates indicating a rise in U.S. crude inventories and expectations of reduced tensions in the Middle East following recent diplomatic efforts. brent crude futures saw a minor decline of 9 cents, or 0.1 percent, settling at USD77.11 per barrel, while U.S. West Texas Intermediate crude fell by 12 cents, or 0.2 percent, to USD73.05 per barrel. This dip in prices reflects market reactions to the latest data and geopolitical developments.
According to the American petroleum Institute, U.S. crude oil inventories increased by 347,000 barrels over the past week. In contrast, gasoline stocks decreased by 1.043 million barrels and distillate inventories dropped by 2.247 million barrels. The rise in crude inventories suggests a potential supply surplus, which could exert downward pressure on oil prices. The U.S. government is expected to release its official inventory figures later today, which will provide further insights into the current oil supply situation.
In parallel, U.S. Secretary of State Antony Blinken wrapped up his visit to the Middle East, which was aimed at facilitating a ceasefire in the ongoing Gaza conflict. Blinken's discussions, along with those of mediators from Egypt and Qatar, have fostered optimism about a potential U.S. proposal to bridge gaps between the conflicting parties. This diplomatic progress is anticipated to influence market sentiments and expectations related to the geopolitical landscape in the region.
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