Oil Prices Decline as U.S Stockpiles Surpass Target
Oil prices fell in the global commodities market on Thursday following an increase in U.S. crude oil inventories. A surge in US stockpiles and ongoing efforts for a Russia-Ukraine peace deal were offset by concerns over supply.
Brent crude fell by 0.02%, trading at $75.79 per barrel while the US benchmark West Texas Intermediate (WTI) decreased by 0.06%, settling at $72.11 per barrel.
The American Petroleum Institute (API) reported that US commercial crude oil stocks increased by 3.3 million barrels last week, surpassing market expectations of a 2.2 million barrel increase.
The higher-than-expected increase in inventory indicated weaker demand in the US, putting downward pressure on oil prices. The US Energy Information Administration (EIA) is expected to release official inventory data during the day.
In addition, expectations of a potential Russia-Ukraine peace deal continue to support the decline in prices by slightly easing supply concerns among market players. US President Donald Trump stated that it is very important to end the Russia-Ukraine war, during a summit organized by the Future Investment Initiative (FII) Institute in Miami.
Stating his belief that peace will be achieved through talks organized by the Russian and US delegations in Riyadh, Saudi Arabia, to resolve the Ukraine conflict, Trump said, ‘We hope to see a ceasefire soon and reestablish stability in Europe and the Middle East.’
Russian President Vladimir Putin said Wednesday in St. Petersburg that the talks with the US delegation in Riyadh were ‘positive’ and ‘in good faith.’
Noting that concrete results were achieved from the talks, Putin said that the two countries had agreed to resume normal operations of their diplomatic missions.
Putin emphasized that Russia and the US are collaborating on areas of mutual interest in the Middle East, including the Syrian and Palestinian issues, while also stressing that Ukraine remains a priority.
On the other hand, reports that Ukraine attacked an oil pumping station belonging to the Caspian Pipeline Consortium (CPC), which transports Kazakh oil, as a ‘reaction to the US,’ have intensified supply concerns in the market, limiting the decline in prices.
It has been reported that the attack on the station feeding the CPC line has reduced its capacity by 30 to 40%, with the repair process expected to take a significant amount of time. #Oil Prices Decline as U.S Stockpiles Surpass Target Ministry Seeks $2 billion Fibre Optics Funding
