Oil Prices Slip on Rising U.S. Reserves, Easing Tensions

21 Aug 2024 , 09:34 AM

Oil prices fell on Wednesday, owing to rising oil stocks in the United States and optimism that tensions in the Middle East would ease following mediators’ trip of the region.

Brent crude futures declined 9 cents to $77.11 a barrel. U.S. West Texas Intermediate crude fell 10 cents to $73.07 per barrel.

U.S. crude oil stocks were expected to rise by 347,000 barrels last week, according to market sources citing American Petroleum Institute estimates on Tuesday. According to sources, petrol and distillate stocks declined by 1.043 million and 2.247 million barrels, respectively.

The United States is the world’s largest producer and user of oil, and rising inventories suggest an oversupply that might depress prices.

Official US government inventory estimates are scheduled to be announced on Wednesday at 10:30 a.m. local time.

Meanwhile, US Secretary of State Antony Blinken returned from a trip to the Middle East where he hoped to help arrange a cease-fire agreement in Gaza.

Blinken and Egyptian and Qatari mediators have expressed optimism about a “bridging proposal” from the United States that could narrow the gap between the two parties in the 10-month-old conflict.

An expansion of the fighting in the region might reduce crude supplies from some of the world’s largest producers.

The market was also haunted by ongoing economic woes in China, the world’s largest crude importer.

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