Oil prices edged down in early Asian trading on Wednesday, following a brief rebound in the previous session. This decline was attributed to an unforeseen rise in U.S. crude oil and gasoline stocks, which tempered concerns over global oil supply.
By 0020 GMT, Brent crude futures had decreased by 21 cents, or 0.27%, settling at $76.27 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell by 25 cents, or 0.34%, to $72.95 per barrel.
Recent data from the American Petroleum Institute (API) revealed an unexpected increase in U.S. crude oil, gasoline, and distillate inventories for the week ending August 2. The figures showed a rise of 176,000 barrels in crude oil stocks, contrary to analysts’ expectations of a 700,000-barrel decline.
Gasoline inventories grew by 3.313 million barrels, against the anticipated draw of 1 million barrels, and distillate stocks rose by 1.217 million barrels, surpassing predictions.
The U.S. Energy Information Administration (EIA) is scheduled to release its weekly inventory data at 10:30 a.m. (1430 GMT) on Wednesday.
Earlier this week, Brent futures had fallen to their lowest level since early January, and WTI futures had reached their lowest since February, due to a global stock market slump and recession fears in the U.S., the world’s leading petroleum consumer. However, prices rebounded on Tuesday as tensions in the Middle East heightened supply concerns.
Iran’s threats of retaliation against Israel and the U.S. following the deaths of two militant leaders have fueled fears of a broader conflict in the region, which could disrupt oil supplies. ANZ analyst Daniel Hynes noted that any escalation in the Middle East conflict could pose a significant risk to oil supply stability.
Additional concerns have arisen from reduced production at Libya’s Sharara oilfield, which produces 300,000 barrels per day. Global oil inventories have decreased by approximately 400,000 barrels per day in the first half of this year, with the EIA projecting a further decline of 800,000 barrels per day in the latter half of the year.
