On Wednesday, the oil market declined after an unexpected rise in U.S. crude inventories raised concerns about future demand.
West Texas Intermediate (WTI) for May delivery decreased by 0.33% to $81.35 per barrel on the New York Mercantile Exchange.
Brent crude for June also dropped by 0.26% to $85.41 on the Intercontinental Exchange.
The decrease started after the American Petroleum Institute reported a significant 9.3 million barrel increase in U.S. oil stocks for the week ending March 22.
The Department of Energy later confirmed a 3.165 million barrel rise, contrary to analysts’ expected 1.2 million barrel decrease.
Investors are now eyeing the upcoming OPEC+ meeting on April 3, expecting oil production to remain the same.
This anticipation contributes to the downward pressure on oil prices.
Geopolitical tensions, such as recent attacks in the Red Sea and ongoing conflicts in Gaza, might stabilize prices somewhat.
These events introduce uncertainty that could keep oil prices from falling too sharply.
This situation highlights the delicate balance in the oil market, affected by inventory changes, geopolitical unrest, and industry expectations.
The combination of rising inventories and constant production levels suggests that traders will take a cautious approach as they navigate these complexities.