Oil Prices Stabilise Amidst Easing Middle East Tensions

(MENAFN- Investor Ideas) Oil prices stabilised after a recent drop primarily driven by rising U.S. crude inventories and easing tensions in the Middle East. The increase in U.S. crude stocks, which rose by 347,000 barrels for the week ending August 16, suggests a potential oversupply and is putting pressure on prices. This rise contrasts with expectations of a 2.9-million-barrel drop, following a 5.2-million-barrel decrease the previous week.

Concerns about global demand persist, with weaker refinery margins and reduced Russian crude oil imports underscoring ongoing market issues. Economic troubles in China are also dampening market sentiment, impacting both state-run and independent refineries.

Looking ahead, today's FOMC Meeting Minutes and comments from Fed Chair Jerome Powell on the economy and inflation could induce volatility in the oil market. However, given current factors such as rising U.S. inventories and reduced Middle East tensions, any potential price increase might be limited unless the Fed signals more aggressive rate cuts.

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