Jakarta, INTI - Oil prices edged lower on Wednesday morning following reports, citing data from the American Petroleum Institute, indicating a rise in U.S. crude inventories.
Brent futures dropped $1.15, or 1.11%, to $102.27 a barrel by 0108 GMT, while U.S. West Texas Intermediate crude dropped $1.54, or 1.6%, to $94.67.
Market sources, referencing API data released on Tuesday, reported that U.S. crude inventories increased by 6.56 million barrels for the week ending March 13.
Meanwhile, a Reuters survey had projected that U.S. crude stockpiles would increase by around 380,000 barrels during the same period.
Supply Developments and Geopolitical Tensions Impact Market Sentiment
On the supply side, Iraq’s oil minister announced on Tuesday that the Iraqi government and the Kurdistan Regional Government had reached an agreement to restart oil exports to Turkey’s Ceyhan energy hub beginning Wednesday.
Oil shipments from the Ceyhan port are expected to resume at 10 a.m. local time (0700 GMT).
In Libya, the National Oil Corporation reported early Wednesday that flows from the Sharara oilfield were being gradually rerouted through alternative pipelines following a fire incident. The company added that production remains ongoing and no casualties were reported.
Iran's security chief Ali Larijani was killed by Israel, Tehran confirmed on Tuesday, the most senior figure targeted since the U.S.-Israeli war's first day, while a senior Iranian official said Iran's new supreme leader rejected de-escalation offers conveyed by intermediary countries.
The U.S. military also stated on Tuesday that it had struck locations along Iran’s coastline near the Strait of Hormuz, citing risks posed by Iranian anti-ship missiles to international shipping routes.
According to Mingyu Gao, chief researcher for energy and chemicals at China Futures, the death of Larijani and U.S. strikes on Iranian coastal positions have raised expectations that the conflict could conclude sooner.
Conclusion
The decline in oil prices reflects a combination of rising U.S. crude inventories and evolving global supply dynamics, alongside geopolitical tensions in key regions. These factors continue to shape market sentiment, highlighting the sensitivity of oil prices to both economic indicators and international developments.
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