By Nicole Jao
Oil prices took a hit in early Asian trading on Wednesday as industry data revealed an unexpected build in oil and gasoline inventories, offsetting concerns about global oil supply. This led to a brief rebound in the previous session but now futures are slipping once again.
Crude oil futures fell by 0.27% to $76.27 a barrel, while U.S. West Texas Intermediate crude slipped by 0.34% to $72.95 per barrel.
The unexpected rise in U.S. crude oil, gasoline, and distillate inventories last week, as reported by the American Petroleum Institute, has caused concern among market sources. Crude stocks were up by 176,000 barrels, contrary to analysts’ expectations of a decrease by 700,000 barrels. Gasoline inventories rose by 3.313 million barrels and distillate stocks by 1.217 million barrels, both higher than anticipated.
The U.S. Energy Information Administration is set to release weekly inventory data on Wednesday, which will provide more insight into the current situation.
Despite the recent decline in oil prices, tensions in the Middle East have sparked concerns about potential supply disruptions. Iran’s threats of retaliation against Israel and the U.S. following the killing of two militant leaders, along with lower production at Libya’s Sharara oilfield, are contributing to worries about supply shortages.
Global oil inventories have been decreasing, and the U.S. Energy Information Administration estimates a further decline in stockpiles in the second half of the year.
In conclusion, the fluctuations in oil prices and supply concerns in the global market can have a direct impact on your finances. It is important to stay informed about these developments as they can influence the prices you pay at the pump and the overall health of the economy. Understanding these factors can help you make more informed decisions about your investments and financial future.