Oil prices down on swelling US crude stocks, easing Middle East tensions
8:31 pm Tuesday, August 20th, 2024
By Laila Kearney
(Reuters) – Oil prices slipped on Wednesday on estimates showing swelling U.S. crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
Brent crude futures fell 9 cents to $77.11 a barrel by 0001 GMT. U.S. West Texas Intermediate crude lost 10 cents at $73.07 per barrel.
U.S. crude oil stocks were seen rising last week by 347,000 barrels, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline and distillate stocks, however, fell by 1.043 million barrels and 2.247 million barrels respectively, according to the sources.
The United States is the world’s biggest producer and consumer of oil, and growing inventories point to oversupply that could hinder prices.
Official U.S. government inventory estimates are set to be released on Wednesday at 10:30 a.m. local time.
Meanwhile, U.S. Secretary of State Antony Blinken wrapped up a trip to the Middle East intended to help broker a ceasefire agreement in Gaza.
Blinken and mediators from Egypt and Qatar have raised hopes for a U.S. “bridging proposal,” which could shrink the gaps between the two sides in the 10-month-old war.
An escalation of a war in the region could curtail crude supplied by some of the world’s large producers.
Ongoing economic struggles in top crude importer China continued to haunt the market as well.
(Reporting by Laila Kearney in New York)
