Oil Prices Climb on Lower US Inventories

Crude oil prices witnessed a significant uptick, rising by more than 1% this Wednesday. This surge comes in the wake of reports from the American Petroleum Institute (API) indicating a 4.5 million barrels drop in US inventories last week. The decrease in stockpiles, coupled with heightened demand in European and Chinese markets due to recent price dips, has fueled this upward trend.

Geopolitical Tensions Add to Price Volatility

Adding layers to the oil price narrative are escalating geopolitical conflicts. The ongoing strife between India and Pakistan, marked by military exchanges, and Israel's recent airstrikes in Yemen against the Houthis, are contributing to the market's nervousness, potentially impacting oil supply chains.

Market Reactions

At 3:10 am ET, West Texas Intermediate (WTI) for June's settlements saw a 1.49% increase, trading at $59.97 per barrel. Similarly, Brent for July deliveries rose by 1.24% at 3:11 am ET, reaching $62.92 per barrel.