Oil prices fluctuate due to mixed signals in supply, demand dynamics
Date
11/20/2024 3:19:48 AM
(MENAFN) Oil prices opened Wednesday's trading session with fluctuations driven by mixed signals in supply and demand dynamics. Official US data indicated a marked drop in oil demand, coinciding with escalating geopolitical tensions in Europe amid the ongoing Ukrainian crisis. These factors have introduced uncertainty into oil price expectations, with market participants closely monitoring developments.
During Tuesday's trading, oil prices rose slightly as investors responded cautiously to the heightened conflict between Russia and Ukraine. Gains were limited, however, by the partial restart of Norway's Johan Sverdrup oil field, which helped stabilize supply concerns. The market remains on edge as geopolitical risks evolve.
Adding to the tension, Russian President Vladimir Putin eased nuclear strike conditions following Ukraine's use of US-supplied ATACMS missiles to hit deep within Russian territory. Brent crude futures for January delivery slipped marginally by USD0.1 to USD73.25 per barrel early Wednesday, while US West Texas Intermediate (WTI) crude for December delivery rose slightly by USD0.14 to USD69.50 per barrel.
Preliminary US inventory data also influenced the market, showing a significant rise of nearly 5 million barrels, far exceeding the forecasted increase of 0.8 million barrels. This comes after a decline in inventories the previous week. Distillate inventories fell by 880,000 barrels, and traders await official data from the US Energy Information Administration to confirm trends and provide further market direction.
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