With a drop of more than 1% this Wednesday, oil also lost ground due to the increase in crude oil inventories.
He Petroleum fell more than 1% this Wednesday, losing ground for the third consecutive session on hopes of a ceasefire agreement in middle East and due to the increase in crude oil inventories and production in USAmain consumer.
Expectations that a ceasefire agreement will be reached between Israel and Hamas have grown after a renewed push led by Egypt, even when the Israeli prime minister, Benjamin Netanyahu has promised to press ahead with the long-promised assault on Ráfah.
July Brent crude futures were down $1.24, or 1.4%, at $85.09 a barrel by 1145 GMT, having hit $84.78, their lowest since March 15. U.S. West Texas Intermediate crude oil futures for June fell $1.33, or 1.6%, to $80.60, after hitting their lowest 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.”
Those responsible for the US Federal Reserve They conclude their two-day monetary policy meeting on Wednesday and are expected to keep interest rates stable. A rate cut would boost economic growth and fuel demand.
In addition, prices were affected by the increase in crude oil inventories in USA and the increase in production.
US crude oil inventories rose by 4.906 million barrels in the week ended April 26, according to market sources citing figures from the American Petroleum Institutecompared to expectations of a decrease of 1.1 million barrels.
Operators will wait to see if the official data from the Energy Information Administration (EIA) at 1430 GMT they confirm the trend.
On Tuesday, the EIA It 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
