Oil prices saw a slight uptick on Wednesday following a surprising drop in U.S. crude stocks last week, signaling a positive outlook for demand. Brent crude futures rose by 5 cents to $88.47 a barrel, while U.S. West Texas Intermediate crude futures climbed 8 cents to $83.44 a barrel.
According to market sources citing American Petroleum Institute figures, U.S. crude inventories fell by 3.237 million barrels in the week ending April 19, defying expectations of a rise by six analysts polled by Reuters. Traders are eagerly awaiting the official U.S. data on oil and product stockpiles for confirmation of this significant drawdown.
Meanwhile, U.S. business activity slowed in April to a four-month low, prompting speculation about potential rate cuts to support the economy. Analysts believe that such rate cuts could stimulate economic growth and subsequently increase demand for oil in the top consumer market.
Despite these developments, attention remains focused on the ongoing conflicts in the Middle East. Recent reports indicate that both Iran and Israel have concluded their operations against each other, with no immediate follow-up actions required. However, Israeli strikes intensified in Gaza on Tuesday, raising concerns about the potential impact on oil supplies.
Furthermore, the U.S. and Europe are reportedly preparing for new sanctions against Iran, although analysts believe that these measures may not have an immediate effect on oil supply. Overall, the market continues to monitor geopolitical tensions in the region while also assessing the implications of economic indicators on oil demand.