Oil prices dip as U.S. stockpiles climb, market watches Middle East developments
Shafaq News/ Oil prices dipped onWednesday after industry data showed U.S. crude inventories swelled more thanexpected, though declines were capped as the market watched diplomatic effortsin the Middle East after Israel continued attacks on Gaza and Lebanon.
Brent crude futures dipped 20 cents,or 0.3%, to $75.84 a barrel by 0330 GMT. U.S. West Texas Intermediate crudefutures shed 20 cents, or 0.3%, to $71.54 a barrel.
Crude futures settled higher in thetwo previous sessions this week.
"The market continues to waitfor Israel's response to Iran's missile attack," ING analysts said onWednesday, adding the price strength on Tuesday was possibly due to the lack ofoutcome from U.S. Secretary of State Antony Blinken's latest visit to Israel.
Blinken held "extendedconversations" with Israeli Prime Minister Benjamin Netanyahu and seniorIsraeli leaders, urging them to get more humanitarian aid into Gaza, a seniorState Department official said.
Israel on Tuesday also confirmed ithad killed Hashem Safieddine, the heir apparent to late Hezbollah leader HassanNasrallah who was killed last month in an Israeli attack targeting theIran-backed Lebanese militant group.
"Market participants priced forthe Middle East conflict to drag for longer, with a ceasefire deal potentiallyseeing some gridlock," said Yeap Jun Rong, market strategist at IG.
"China's recent stimulusefforts may translate to some success in stabilising conditions or even drive amore sustained recovery ahead, which may positively affect oil demand,"Yeap added.
Meanwhile, U.S. crude stocks rose1.64 million barrels last week, according to market sources, citing AmericanPetroleum Institute figures on Tuesday, weighing on prices. Analysts polled byReuters expected a 300,000-barrel increase in crude stocks.
Official U.S. government oilinventory data is due on Wednesday at 10:30 a.m. EDT (1430 GMT).
"With oil prices swinging fromoversold to overbought territory within short time frames, maintaining aposition in either side of the market can prove challenging," JimRitterbusch, of Ritterbusch and Associates in Florida, said in a note.
Goldman Sachs on Tuesday said itexpects oil prices to average $76 a barrel in 2025 based on a moderate crudesurplus and spare capacity among producers in OPEC+, which groups theOrganization of the Petroleum Exporting Countries and allies led by Russia.
(REUTERS)
