Oil Prices Climb Amid Lower US Inventories

Crude oil prices experienced a significant increase, rising by more than 1% on Wednesday. This surge came after the American Petroleum Institute (API) reported a notable drop in United States inventories, with a decrease of 4.5 million barrels in the previous week. Additionally, the recent dip in oil prices has sparked greater demand in European and Chinese markets, further fueling the price hike.

Geopolitical Tensions Add to Price Volatility

The escalation of conflicts between India and Pakistan, along with Israel's ongoing military actions in Yemen against the Houthis, has contributed to the growing geopolitical tensions affecting oil prices. These developments have raised concerns over potential disruptions to oil supply, adding another layer of complexity to the market's dynamics.

Market Reactions

West Texas Intermediate (WTI) for June's settlements saw a 1.49% increase, trading at $59.97 per barrel at 3:10 am ET. Similarly, Brent for July deliveries gained 1.24%, reaching $62.92 per barrel at 3:11 am ET, reflecting the market's responsive adjustments to the current geopolitical and inventory scenarios.