According to Reuters, oil prices increased on Wednesday as the market braced for a potential escalation of the Israel-Gaza conflict, which could have an influence on world oil supplies, and as an industry data revealed a decline in US gasoline and crude inventories.
By 8:50 a.m. Saudi time, Brent crude futures had increased by 41 cents, or 0.5 percent, to $81.10 per barrel. The price of a barrel of US West Texas Intermediate crude rose by 41 cents, or 0.5 percent.
“US crude inventories were significantly reduced by 5.2 million barrels, according to the American Petroleum Institute (API), much above a 2 million barrel decrease that was predicted. The figures indicated that there is still a healthy demand for oil, according to Danish Lim, an investment analyst at Phillip Nova.
“However, geopolitics continues to be the biggest concern, since the possibility of a rise in tensions in the Middle East could provide an upward risk to oil prices in the upcoming weeks.”
Market sources citing the API data said that during the week ending August 9, crude stockpiles decreased by 5.21 million barrels. While distillates increased by 612,000 barrels, gasoline stockpiles decreased by 3.69 million barrels.
Declining stocks might be a sign of increased demand in the US, the largest oil user in the world.
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