The oil prices fell this Wednesday, October 23 after learning that the crude oil inventories in the United States rose more than expected, although the declines were limited by the market’s attention to diplomatic efforts in the Middle East following Israel’s continued attacks on Loop and Lebanon.
The Brent crude oil futures they go down US$1.25 (-1.6%) to $74.79 per barrel. The US West Texas Intermediate (WTI) crude oil futures give in $1.20 (-1.7%) to $70.54 the barrel.
Crude oil futures prices closed higher in the previous two sessions this week. “The market is still awaiting Israel’s response to Iran’s missile attack,” ING analysts said on Wednesday, adding that price strength on Tuesday was possibly due to lack of results from the last visit of the United States Secretary of State, Antony Blinken, to Israel.
Oil prices: United States negotiates with Israel to send humanitarian aid to Gaza
Blinken held “extensive conversations” with the Israeli prime minister, Benjamin Netanyahuand senior Israeli leaders, urging them to provide more humanitarian aid to Gazasaid a senior State Department official.
Israel also confirmed on Tuesday that it had killed Hashem Safieddinethe heir of the late Hezbollah leader, Hasan Nasrallahwho died last month in a Israeli attack on Lebanese militia groupbacked by Iran.
“Market participants expect the Middle East conflict to drag on for longer, and a ceasefire agreement could lead to some stalemate,” he said. Yeap Jun Rongmarket strategist at IG.
“China’s recent stimulus efforts may translate into some success in stabilizing conditions or even drive a more sustained recovery, which may positively impact oil demand,” Yeap added.
Increase in oil stock
US crude oil inventories rose by 1.64 million barrels last weekaccording to market sources who cited figures from the American Petroleum Institute on Tuesday, which weighed on prices.
Analysts polled by Reuters had expected an increase of 300,000 barrels in crude oil inventories. Official oil inventory data from the US government will be released on Wednesday.
“With oil prices swinging between oversold and overbought in short periods of time, holding a position on either side of the market can be difficult,” he said. Jim Ritterbuschof Ritterbusch and Associates in Florida, in a note.
Goldman Sachs said Tuesday it expects oil prices to average $76 a barrel in 2025.based on a moderate surplus of crude oil and the excess capacity of OPEC+ producers, which brings together the Organization of the Petroleum Exporting Countries and allies led by Russia.
Source: Ambito
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