Oil Prices Climb on Lower US Inventories

Crude oil prices experienced a significant increase of more than 1% this Wednesday. This surge comes in the wake of reports from the American Petroleum Institute (API) indicating a substantial drop in US inventories by 4.5 million barrels last week. The decrease in inventories has sparked a renewed interest in oil markets, particularly in Europe and China, where lower prices had previously dampened demand.

Geopolitical Tensions Fuel Price Increases

Adding to the volatility, escalating geopolitical tensions between India and Pakistan, alongside Israel's recent attacks in Yemen, have contributed to the upward pressure on oil prices. These developments have raised concerns over potential disruptions to oil supply, further enticing investors and traders to the market.

Market Reactions

West Texas Intermediate (WTI) for June's settlements saw a 1.49% increase, trading at $59.97 per barrel. Similarly, Brent for July deliveries gained 1.24%, reaching $62.92 per barrel. These figures underscore the market's responsiveness to both inventory levels and geopolitical events.