WionDrive News Desk 
Oil prices fell on Wednesday amid rising US crude inventories and easing tensions in the Middle East. Brent crude futures were down 9 cents, or 0.1%, settling at USD 77.11 a barrel by 0340 GMT. US West Texas Intermediate crude declined by 12 cents, or 0.2%, to USD 73.05 per barrel. Market estimates indicated that US crude oil stocks increased by 347,000 barrels last week, according to data from the American Petroleum Institute (API). In contrast, gasoline and distillate stocks saw reductions of 1.043 million barrels and 2.247 million barrels, respectively.
The rise in US crude inventories signals a potential oversupply in the market, which could exert downward pressure on prices. The US is both the largest producer and consumer of oil, making its inventory levels a critical factor for global oil markets. The official US government inventory report is expected to be released later Wednesday at 10:30 a.m. local time.
In the Middle East, US Secretary of State Antony Blinken recently concluded a diplomatic tour aimed at facilitating a ceasefire agreement in Gaza. Blinken, along with mediators from Egypt and Qatar, has sparked optimism about a possible US “bridging proposal” that could reconcile differences between conflicting parties in the ongoing 10-month conflict.
Strategists at ING Commodities noted that the prospect of a ceasefire between Israel and Hamas has contributed to the recent decline in oil prices. They also pointed out ongoing global demand concerns, citing weak refinery margins and reduced fuel demand as contributing factors. These issues extend beyond China, which has been grappling with economic difficulties that have affected its oil consumption.
Additionally, data released this week revealed a 7.4% drop in crude oil imports from Russia in July compared to the previous year. Fuel oil imports also continued their decline for the third consecutive month, according to customs data.
