Oil Prices Rise Slightly as Markets Assess US-Iran Agreement and Falling US Inventories

BOP Products

Oil field.

Oil prices recorded modest gains during Asian trading on Wednesday but remained close to three-month lows as investors assessed the possibility of increased global supplies following the US-Iran peace agreement. Meanwhile, a sharp decline in US crude inventories offered some support to the market.

Brent crude futures for August delivery rose by 0.6% to $79.40 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.6%, reaching $76.52 per barrel.

Both benchmarks had fallen by almost 5% on Tuesday, marking their lowest levels since early March. Brent settled the previous session at $78.96 per barrel, while WTI closed at $76.05.

The slight recovery on Wednesday came after industry data showed a substantial reduction in US crude stockpiles, pointing to strong underlying demand in the world’s largest oil-consuming nation. According to the American Petroleum Institute (API), crude inventories declined by 8.33 million barrels in the week ending 12 June, significantly exceeding forecasts of a 4.5 million-barrel decrease.

At the same time, petrol inventories increased by 2.48 million barrels, while distillate stocks, including diesel and heating oil, edged down by 10,000 barrels.

The sharp fall in crude inventories suggests demand in the United States remains resilient and that near-term supplies have tightened.

Nevertheless, traders continued to monitor the potential impact of the US-Iran peace agreement, which could lead to the gradual reopening of the Strait of Hormuz and the return of additional Middle Eastern crude supplies to global markets.


PUKMEDIA