Oil prices climbed on Wednesday as market participants reacted to both geopolitical developments and the latest US crude inventory figures for the third week of June.
The Energy Information Administration (EIA) reported a surprise increase of 3.6 million barrels in US crude stocks, bringing the total to 460.7 million barrels. This exceeded expectations of a 2.6 million barrel decrease. Meanwhile, gasoline stocks saw a rise of 2.7 million barrels to 233.9 million barrels, while distillate stocks fell by 0.4 million barrels to 121.3 million barrels.
The uptick in oil prices was also influenced by escalating geopolitical tensions. The Houthis have heightened their attacks on ships in the Red Sea, contributing to concerns about supply disruptions. Additionally, growing political instability in Lebanon added to market uncertainty.
In trading, Brent futures for August delivery edged up 0.3% or 24 cents to settle at $85.25 per barrel. US crude futures for August delivery closed 0.1% higher at $80.90 per barrel.
The combination of supply data and geopolitical risks continues to shape sentiment in the oil markets, with traders closely monitoring developments that could impact global oil supply and demand dynamics.
