International oil prices fell for the third day in a row, given hopes of a ceasefire agreement in the Middle East and due to the increase in inventories and production in the United States.
Oil prices fell more than 3% on Wednesday, losing ground for the third consecutive session due to hopes of a ceasefire agreement in the Middle East and due to the increase in crude oil inventories and production in the United States, the main global consumer.
Expectations that a ceasefire agreement will be reached between Israel and Hamas have grown following a renewed push led by Egypt, even as Israeli Prime Minister, Benjamin Netanyahuhas promised to press ahead with the long-promised assault on Ráfah.
Brent crude futures closed down $2.89, or 3.3%, at $83.44; while US West Texas Intermediate crude futures lost $2.93, or 3.58%, to $79.00 a barrel, after previously hitting a low not seen since March 21.
“The crude oil market is weighed down by continued hopes for a ceasefire,” said Ole Hansen of Saxo Bank. “In addition, stubborn US inflation has further reduced expectations for rate cuts.”
US reserves
In addition, prices were affected by the increase in crude oil inventories in the United States and the increase in production.
U.S. crude inventories rose by 4.906 million barrels in the week ended April 26, according to market sources citing figures from the American Petroleum Institute, compared to expectations for a decline of 1.1 million barrels.
Traders will wait to see if official data from the Energy Information Administration (EIA) at 1430 GMT confirms the trend.
On Tuesday, the EIA said U.S. production rose to 13.15 million barrels per day (bpd) in February from 12.58 million bpd in January, its biggest monthly increase in about 3-1/2 years.
Source: Ambito
