Price movements
Crude futures fell Brent 60 cents, or 0.8 percent, to $76.58 per barrel at settlement.
US West Texas Intermediate crude futures also fell 33 cents, or 0.5 percent, to $73.24.
The US Energy Information Administration said that crude inventories jumped by 5.8 million barrels to 422.7 million barrels last week, compared to analysts’ expectations in a Reuters poll for an increase of two million barrels.
The United States is currently preparing for Hurricane Milton, which brought strong winds and caused heavy rain hours before it made landfall in Florida.
The hurricane actually increased demand for gasoline, as the supply was completely sold out at about a quarter of gas stations in the state, which helped support crude prices.
Markets remain on alert for a possible Israeli attack on oil infrastructure in IranThis is even after crude prices fell by more than four percent yesterday due to the possibility of reaching a ceasefire between the Lebanese Hezbollah group andIsrael.
The American President spoke Joe Biden To Israeli Prime Minister Benjamin Netanyahu about Israel’s plans regarding oil-producing Iran during a phone call today. Neither the White House nor Netanyahu’s office provided details about the conversation.
Although threats to the oil-producing Middle East region are the primary concern, economic problems in China have limited price increases.
China said on Tuesday that it was “fully confident” of achieving its growth target for the full year, but refrained from taking stronger financial steps, disappointing investors who had bet on increased support for the economy.
Investors are concerned about weak fuel demand in China, the world’s largest importer of crude oil, due to slowing growth.
Weak demand continued to support fundamental expectations.
Yesterday, Tuesday, the US Energy Information Administration lowered its forecast for global oil demand growth in 2025 due to weak economic activity in China and North America.
