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Forecasts for an inventory decrease during the third quarter peak summer demand season and geopolitical uncertainties from the Middle East war kept Brent oil prices unchanged at $85 a barrel on Wednesday.
Brent fell 9 cents, or 0.11%, to $84.92 a barrel at 1315 GMT. WTI fell 7 cents, or 0.09%, to $80.76 a barrel.
The API reported Tuesday that U.S. crude oil stockpiles jumped 914,000 barrels last week, market sources said. On average, experts projected them to drop by 2.9 million barrels in Energy Information Administration inventory data coming at 1430 GMT.
The dollar rose 0.3%. Its recent surge has made dollar-priced oil more costly for non-dollar purchasers.
“The consensus is that summer demand will rise,” said PVM oil dealer Tamas Varga. “Geopolitics is still seen as a supportive element of the equation.”
DBS Bank energy sector team head Suvro Sarkar said: “It seems the market is shrugging off demand concerns for now, anticipating inventory drawdowns in peak third quarter demand season”.
Strength in front-month oil prices indicates near-term physical demand. August Brent and WTI crude prices were 70-75 cents higher than September.
“OPEC+ production curbs and robust summer demand keep crude oil in a narrowing range,” said Saxo Bank commodities strategy head Ole Hansen.
DBS’ Sarkar said Houthi assaults on Red Sea shipping and Israel-Hezbollah tensions in Lebanon are also optimistic for oil prices.
whitewater rafters seeking currents.
The Houthis have sunk two boats and taken another, and on Tuesday they targeted an Arabian Sea vessel with a missile.
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