Oil Prices Climb over Positive Demand Outlook in U.S
Oil prices rose on Wednesday, driven by a stronger demand outlook in the US, the world’s largest oil consumer, while reports of a potential cease-fire between Israel and Hamas continued to put downward pressure on prices.
The international benchmark Brent crude increased by 0.2%, trading at $79.70 per barrel. The US benchmark West Texas Intermediate (WTI) rose by 0.26%, reaching $76.91 per barrel, compared to its prior session close of $76.70.
The American Petroleum Institute (API) reported a drawdown in US commercial crude oil inventories for the week ending Jan. 10. API data showed a decline of 2.6 million barrels, although it was still below market expectations of a 3.5 million barrel drop.
The drop in stocks suggests strengthening demand in the US, pushing both benchmarks higher. The US Energy Information Administration will release official inventory data later on Wednesday.
Talks of a prisoner swap and cease-fire, facilitated by Qatar, Egypt, and the US, continued to weigh on prices. Israeli Prime Minister Benjamin Netanyahu said Tuesday that a prisoner swap deal with the Palestinian group Hamas could be finalized in a matter of ‘days or hours.’
Speaking during a meeting with families of Israeli captives being held in Gaza, Netanyahu said he is ‘ready for a prolonged cease-fire on condition that all the abductees are returned.’
Netanyahu, who has rejected previous proposals, reiterated that progress depends on Hamas’s response. Earlier, Hamas said that a Gaza cease-fire and prisoner swap agreement is in ‘its final stages.’
White House National Security Advisor Jake Sullivan said Tuesday that the Biden administration hopes to finalise the cease-fire and hostage exchange deal this week, adding the ‘actual implementation and execution’ of the deal will remain to the next administration.
Meanwhile, uncertainty about the potential impact of policies under the upcoming US president, Donald Trump, has made investors more cautious. Analysts expect today’s inflation data and the US Federal Reserve’s (Fed) Beige Book report to have impact on the markets. #Oil Prices Climb over Positive Demand Outlook in U.S FBN Holdings Records Huge Off-Market Shares Transactions
