Oil Steadies With Middle East Tensions, US Stockpiles in Focus
Oil steadied after closing at the highest in more than two weeks as traders assessed rising tensions in the Middle East, a mixed US stockpiles report, and the likely course of Federal Reserve interest-rate policy.
West Texas Intermediate traded above $71 a barrel after rising by nearly 4% in the prior two days to end at the highest since August, with Brent settling below $74. In Lebanon, thousands were hurt after what Iran-backed Hezbollah labeled as an attack by Israel involving pagers, increasing fears of an all-out war.
In the US, meanwhile, a report from the industry-funded American Petroleum Institute showed that nationwide crude inventories rose by almost 2 million barrels last week, although there was a drop at the key hub in Cushing, Oklahoma, according to people familiar with the data.
Crude remains markedly lower year-to-date, with China's dour demand outlook and plans for OPEC+ to eventually bring back shuttered supply weighing on futures. The outlook has been complicated by prospects for US monetary policy, with investors expecting that Fed will start lowering rates later Wednesday, although there's no consensus about the size of the reduction.
WTI for October delivery was steady at $71.16 a barrel at 7:26 a.m. in Singapore.
Brent for November settlement closed 1.3% higher at $73.70 a barrel.
Source : Bloomberg
