Oil Up Slightly on US Stockpile Drop, Hopes of Mideast Stability
Oil prices edged up on Thursday morning in Asia, boosted by a significant drop in US crude inventories, signaling strong demand. Brent was up 15 cents, or 0.2%, at $67.83 a barrel, while WTI was up 20 cents, or 0.3%, at $65.12 a barrel. The gains extended a rally since Wednesday, when both benchmarks rose nearly 1% after recovering from losses earlier this week.
The US Energy Information Administration (EIA) reported that crude inventories fell by 5.8 million barrels in the week to June 20, far exceeding expectations for a draw of 797,000 barrels. Gasoline stocks also fell by 2.1 million barrels, signaling increased consumption as the US driving season begins. The data reinforces market perceptions that US domestic fuel demand is recovering after a slow start to the year.
However, investors remain wary of geopolitical developments, particularly the status of the ceasefire between Iran and Israel. US President Donald Trump said the conflict in the Middle East was over, but he also stressed that pressure on Iran's oil exports would remain in place. Trump hinted at the possibility of easing sanctions if Iran shows commitment in upcoming talks on its nuclear program.
Meanwhile, market attention has shifted to the OPEC+ meeting in early July. The head of Russia's Rosneft, Igor Sechin, said that the oil producer alliance could accelerate its production increase plan by up to a year earlier. If realized, this could be a balancing factor for oil prices that have strengthened due to tight supply sentiment. However, for now, strong demand fundamentals remain the main driver of global oil price movements.
Source: (ayu-newsmaker)
