By According to Reuters, oil prices fell on Wednesday as a result of estimations indicating rising US crude stocks and anticipations that tensions in the Middle East were reducing after mediators’ tour of the area.
By 9:30 a.m. Saudi time, Brent crude futures had dropped 11 cents, or 0.1 percent, to $77.09 per barrel. At $73.03, US West Texas Intermediate crude fell 14 cents, or 0.2 percent.
US crude oil stockpiles increased by 347,000 barrels last week, according to data from the American Petroleum Institute that were cited by market sources on Tuesday. However, the sources report that distillate and gasoline stocks decreased by 2.25 million and 1.04 million barrels, respectively.
The United States is the largest producer and user of oil in the world, and rising stocks suggest an excess supply that may put pressure on prices.
On Wednesday at 5:30 p.m. Saudi time, the official US government inventory estimates are scheduled to be made public.
In the meantime, US Secretary of State Antony Blinken concluded a trip to the Middle East with the goal of assisting in the mediating of a cease-fire in Gaza.
Expectations of a US “bridging proposal,” which could reduce the distance between the two parties in the 10-month-old conflict, have been raised by Blinken and mediators from Egypt and Qatar.
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