Oil prices saw on Thursday a minor decline as concerns among investors regarding conflict in the Middle East subsided.
Brent oil futures stood at $88.23 per barrel, while West Texas Intermediate (WTI) crude futures reached $82.97 per barrel at 20:50 ET (00:50 GMT).
Read more: Oil prices stabilize as focus shifts to U.S. economy, interest rates
However, the market received some unexpected support from various factors. There was a significant decline in U.S. crude stocks, with the Energy Information Administration (EIA) reporting on Wednesday an unexpected drop of 6.4 million barrels, surpassing expectations of an 825,000-barrel increase.
Additionally, there was a decrease of 600,000 barrels in gasoline stockpiles, while distillate inventories saw a slight rise.
These unexpected figures led to a turnaround in U.S. crude futures, which increased on Wednesday by 12 cents after the release of the EIA’s data. Gasoline futures also experienced a positive shift, rising by 0.5 percent. This unexpected decline in crude stocks contradicted market expectations and interrupted two consecutive weeks of inventory increases. This highlights the unpredictable nature of oil markets and the potential impact of geopolitical tensions on supply dynamics.
The crude oil market faced renewed selling pressure, with open interest rising by 5.74 percent to settle at 5326, accompanied by a price decrease of 39 rupees.
Currently, crude oil finds support at 6853, with a potential downside to 6818, while resistance levels are observed at 6951, and a breakthrough could lead to a test of 7014.
Given the shifting geopolitical landscape and factors affecting the supply side, crude oil remains susceptible to volatility. Investors are closely monitoring inventory data and geopolitical developments to gain insights into future price movements.
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