WionDrive News Desk 
Oil prices experienced a decline on Wednesday as industry data revealed a larger-than-expected increase in U.S. crude inventories. Brent crude futures fell by 50 cents, or 0.7%, settling at USD 75.54 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped by the same amount, closing at USD 71.24 a barrel.
This downturn comes after crude futures had risen in the previous two sessions earlier this week. Analysts at ING noted that market participants are closely monitoring Israel’s response to recent tensions, particularly following a missile attack attributed to Iran. The price gains seen on Tuesday were likely influenced by the lack of decisive outcomes from U.S. Secretary of State Antony Blinken’s discussions with Israeli leaders, which focused on increasing humanitarian aid to Gaza.
In a further escalation, Israel confirmed it had killed Hashem Safieddine, a key figure linked to Hezbollah, in a targeted attack. Yeap Jun Rong, a market strategist at IG, remarked that the ongoing conflict in the Middle East may prolong uncertainties in the oil market, with potential ceasefire negotiations facing delays.
Despite the bearish sentiment, there is some optimism regarding China’s economic stimulus efforts, which could stabilise conditions and support a recovery in oil demand. This optimism contrasts with the bearish inventory report, which indicated a rise of 1.64 million barrels in U.S. crude stocks last week, surpassing analysts’ expectations of a 300,000-barrel increase.
Official U.S. government oil inventory data is set to be released on Wednesday at 10:30 a.m. EDT (1430 GMT), which may further influence market sentiment.
Jim Ritterbusch of Ritterbusch and Associates highlighted the challenges of navigating the current market, noting the rapid swings from oversold to overbought conditions. Meanwhile, Goldman Sachs projected that oil prices could average USD 76 a barrel in 2025, factoring in a moderate crude surplus and existing spare capacity among OPEC+ producers, which includes Russia.
