Oil prices rose slightly on Wednesday, recovering from two-month lows hit in the previous session, following an industry report that showed a decline in U.S. crude stockpiles last week.
اضافة اعلان
Brent crude rose by 20 cents, or 0.3%, to $73.22 per barrel by 04:30 GMT. U.S. West Texas Intermediate (WTI) futures also increased by 18 cents, or 0.3%, to $69.11 per barrel.
Data from the American Petroleum Institute (API) on Tuesday showed that U.S. crude stockpiles fell by 640,000 barrels during the week ending February 21. Official U.S. crude stock data is set to be released later today.
Commodity analysts at ING said in a note on Wednesday: "If the U.S. Energy Information Administration confirms this drop later today, it will be the first decline in U.S. stockpiles since mid-January."
On the other hand, analysts surveyed by Reuters had expected a 2.6-million-barrel increase in U.S. stockpiles last week.
Regarding supply, ING noted that prospects for a peace deal between Russia and Ukraine are improving, which could help lift sanctions on Russia and reduce the uncertainty over oil supply in the market.
Informed sources reported that the U.S. and Ukraine have agreed on a draft agreement related to minerals, a key step in Trump administration’s efforts to end the war in Ukraine quickly.
Negative economic reports from the U.S. and Germany weighed on price gains, contributing to a drop of over 2% in oil prices on Tuesday.
Brent crude recorded its lowest closing level since December 23.
WTI crude posted its lowest settlement since December 10.
U.S. data showed that consumer confidence in February dropped at the fastest pace in three and a half years, as inflation expectations for the next 12 months rose. At the same time, the German economy contracted during the last three months of 2024 compared to the previous quarter, increasing concerns about global economic growth.
Concerns over the impact of President Donald Trump's trade policies also grew, as the U.S. considers imposing new tariffs on China and other trading partners, which could put additional pressure on the U.S. economy.
However, these concerns eased somewhat due to new U.S. sanctions on Iran, which may reduce Iranian oil exports by up to one million barrels per day.
But according to Rory Johnston, an analyst at Commodity Context, any supply shortfall from Iran will likely be partially offset by OPEC+ members who are planning to increase production in the coming months.
