Oil prices rose on Wednesday after industry data revealed an unexpected drop in US crude inventories last week, a positive signal for demand, Anadolu Ajansı reports.
As of 09:32 a.m. local time (0632 GMT), international benchmark Brent crude was trading at $88.21 a barrel, up 0.21 percent from the previous session’s closing price of $88.02 a barrel.
US benchmark West Texas Intermediate (WTI) was trading at $82.95 per barrel at the same time, up 0.17% from the previous session’s closing price of $82.81 per barrel.
A decline in commercial crude inventories in the US, the world’s largest oil consumer, and tensions in the Middle East were factors contributing to the price rise.
The US Energy Information Administration (EIA) reported that commercial crude oil inventories fell by about 6.4 million barrels to 453.6 million barrels last week, while the market had forecast an increase of 1.6 million barrels. Such a large reduction in inventories indicates strong demand, fuelling higher prices.
Although fears over geopolitical tensions in the Middle East have eased, the conflict between Israel and Hamas continues to rage, with Tuesday seeing the heaviest shelling in weeks. Sources said Wednesday that Israel was preparing to evacuate Rafah ahead of a promised assault on the city.
The Israeli offensive has killed more than 34,183 people and injured 77,143 since last October amid a crippling blockade that has left most of the population on the brink of starvation.
