2023-11-15T04:30:05+00:00
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/ Oil prices stabilized after a short-term rise, as the market absorbed the divergent views on supply and demand expectations, while the sector report indicated an increase in US inventories.
Brent, the global benchmark, traded above $82 a barrel, while WTI approached $78.
The International Energy Agency said that global oil markets will not be as tight as expected during the current quarter, with production growth in the United States and Brazil exceeding expectations.
This came after an evaluation by OPEC that highlighted the strong growth trends and healthy fundamentals of the sector.
The industry-funded American Petroleum Institute reported that US crude inventories rose by 1.3 million barrels last week, while inventories at Cushing, Oklahoma, increased by 1.1 million barrels, according to people familiar with the data. Figures issued by AlphaBBL also indicated an increase in inventories in Cushing. Official data on inventories for two weeks is scheduled to be released later on Wednesday.
The price of oil fell sharply since mid-October as factors related to the additional risks of war between Israel and Hamas disappeared, and doubts grew about the demand outlook, before rising in the three days until last Monday. Since then prices have not found their direction, with concerns about the health of the global economy balanced by indicators that continue to show the market is in deficit.
The weak inflation reading in the United States on Tuesday reinforced bets that the Federal Reserve will begin cutting interest rates by mid-2024, supporting the long-term outlook for oil demand and pushing the dollar lower.
In the Middle East, Israel began operations targeting Hamas, classified as a terrorist organization by the United States and the European Union, in part of Al-Shifa Hospital. Israel has said that Hamas and other Iranian-backed militant groups are using hospitals, including Al-Shifa Hospital, as military bases.
Spreads, which are widely used to monitor oil performance, have weakened recently, with the difference between the two closest contracts for Brent oil reaching 24 cents per barrel in the case of “backorder.”
“, compared to $1.55 per barrel a month ago.