Expert Analysis: Oil Prices Slip as Inventory Surges Amid Middle East Tensions
By the World’s Best Investment Manager and Financial Market’s Journalist
Oil prices took a slight dip on Wednesday as industry data revealed a larger-than-expected increase in inventories. Meanwhile, global attention remains fixed on diplomatic efforts in the Middle East, with Israel continuing its attacks on Gaza and Lebanon.
Crude futures fell by 0.4% to $75.73 a barrel, while U.S. West Texas Intermediate crude futures dropped by 0.5% to $71.42 per barrel.
Noted market expert Jim Ritterbusch emphasized the challenges of navigating the volatile oil market, which has seen drastic swings in recent days.
The increase in U.S. crude stocks by 1.64 million barrels last week, as reported by the American Petroleum Institute, exceeded analysts’ expectations of a 300,000-barrel rise. However, gasoline and distillate fuel inventories saw a combined decrease of 3.5 million barrels.
Official U.S. government oil inventory data is set to be released on Wednesday, providing further insights into the market’s health.
In the Middle East, diplomatic efforts are underway as U.S. officials engage with Israeli leaders to address humanitarian concerns in Gaza. Additionally, Israel confirmed the killing of Hashem Safieddine, a key figure in the Iran-backed Hezbollah group.
Goldman Sachs predicts that oil prices will average $76 a barrel in 2025, citing a moderate surplus and spare capacity among OPEC+ members. The market also saw some positive momentum from China’s efforts to stimulate its economy, leading to increased expectations for oil demand.