Oil prices fell on Wednesday after data showed crude oil inventories grew in the United States.
However, losses were contained by the heightened risk uncertainty caused by the Middle East conflict and Hurricane Milton in the US.
Brent crude oil, against which Nigerian oil is priced, dipped 60 cents, or 0.8% to settle at $76.58 a barrel while the US West Texas Intermediate (WTI) crude oil shed 33 cents or 0.5% to $73.24 a barrel.
The Energy Information Administration said on Wednesday that crude inventories rose last week in the US while fuel inventories fell sharply. Back-to-back major hurricanes drove high demand to nearly a three-year high.
Crude inventories rose by 5.8 million barrels to 422.7 million barrels in the week ended October.
The build estimate pressured oil prices which were already facing uncertainties from a host of other developments.
On Tuesday, fears of an escalation in the Middle East gave way to hopes of a ceasefire between Israel and Hezbollah.
The market was also on the lookout as the US, the world’s largest oil producer, faced a second major storm, Hurricane Milton, which came with tornadoes and lashing rain in Florida on Wednesday.
US President Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu about Israel’s plans concerning oil producer Iran in a call on Wednesday.
If Israel attacks Iran’s oil infrastructure, it could lead to a supply deficit but analysts say other producers like Saudi Arabia and the United Arab Emirates (UAE) could step in to fill the gaps.
Investors have also expressed worries about slow growth dampening fuel demand in China, the world’s largest crude importer.
Chinese policymakers’ failure to deliver new economic stimulus measures at a press briefing this week. This also held energy prices in check.
... Crude Oil Prices Slide on Rising US Inventories ... Investors King.
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