By Nicole Jao
As the world's leading investment manager and financial market journalist, I am here to break down the latest developments in the oil market for you. In early Asian trading on Wednesday, oil prices experienced a slight dip after a brief rebound in the previous session. This came after industry data revealed an unexpected build in oil and gasoline inventories, offsetting concerns about global oil supply.
Currently, futures prices for oil are at $76.27 a barrel, with a 0.27% decrease, while U.S. West Texas Intermediate crude is at $72.95 per barrel, showing a 0.34% slip.
Last week, U.S. crude oil, gasoline, and distillate inventories saw a rise, according to market sources citing American Petroleum Institute figures. Crude stocks were up by 176,000 barrels, contrary to analysts' expectations of a 700,000 barrel decrease. Gasoline inventories rose by 3.313 million barrels, and distillate stocks rose by 1.217 million barrels.
The U.S. Energy Information Administration is set to release weekly inventory data on Wednesday, which could further impact market trends.
Despite recent lows in Brent and WTI futures, a rebound was observed on Tuesday due to escalating tensions in the Middle East. Iran's vow of retaliation against Israel and the U.S., along with lower production at Libya's Sharara oilfield, are contributing to concerns about potential supply shortages.
Global oil inventories decreased by 400,000 bpd in the first half of this year, with expectations of a further decline by 800,000 bpd in the second half, as per U.S. Energy Information Administration estimates.
Overall, the oil market remains volatile and is highly influenced by geopolitical events and supply concerns. Stay tuned for more updates as these factors continue to impact oil prices worldwide.