Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Oil prices settle lower as US crude supplies jump, Middle East tensions ease

Published 04/16/2024, 09:23 PM
Updated 04/17/2024, 03:45 PM
© Reuters.
LCO
-
CL
-

Investing.com-- Oil prices settled sharply lower Wednesday, pressured by a much larger-than-expected weekly build in U.S. inventories and easing fears about an escalating in the Iran-Israel conflict.

At 14:30 ET (13:30 GMT),West Texas Intermediate crude futures fell 3.1% to settle at $82.69 a barrel, Brent oil futures fell fell 3% to $87.29 a barrel.

US inventories grow more than expected  

The official U.S. inventory data, from the Energy Information Administration, showed weekly crude stockpiles rose by 2.7M, well above the 1.6M economists had forecast. 

The build came after a 5.8 million barrel rise in the prior week, and was largely driven by U.S. production remaining at record highs above 13 million barrels per day.  

Still, a drop in gasoline inventories, of about 1.2 million barrels, indicated that demand in the world’s biggest fuel consumer was picking up with the approaching summer season.

Concerns that restrictive U.S. monetary policy could further stymie demand in the world's largest economy this year also weighed, especially with economic growth already seen cooling. Mixed economic data from China added to these concerns. 

Iran-Israel escalation fears ease 

While Isreal is expected to act against Iran's recent drone and missile attack over the weekend, many expect the response from Tel Aviv will likely be measured. 

The easing fears of an escalation between Iran and Israel skirmishes forced traders to unwind bets somewhat of a wider war in the Middle East that would have threaten global crude supplies.

"There is a growing sense of calm in oil markets with each attack that doesn’t result in disruption to supply easing concerns that this could be a major issue for the oil market," ANZ Research said in a recent note.

(Peter Nurse, Ambar Warrick contributed to this report.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.