Oil prices surged by more than a dollar on Wednesday amid escalating concerns that tensions in the Middle East could intensify, potentially threatening crude production in the region. Brent futures climbed by $1, or 1.36 percent, reaching $74.56 per barrel, while U.S. West Texas Intermediate (WTI) crude jumped $1.07, or 1.53 percent, to $70.90 at 03:30 GMT. On Tuesday, both crude benchmarks experienced a robust increase of over 5 percent.
The United Nations Security Council convened for a meeting regarding the Middle East on Wednesday, while the European Union urged for an immediate ceasefire. Later in the day, a panel of ministers from the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, will gather to assess the market, though no policy changes are anticipated. Starting in December, OPEC+ – which includes Russia – plans to increase output by 180,000 barrels per day (bpd) each month.
Mixed signals from U.S. stockpiles
U.S. stockpile data presented a mixed picture: crude oil and distillate inventories decreased last week, while gasoline stocks rose, according to market sources referencing American Petroleum Institute data from Tuesday.
Economic implications for oil demand
Oil investors are also keenly awaiting Friday’s U.S. jobless claims report, as it is likely to impact expectations regarding the Federal Reserve’s monetary easing, potentially boosting long-term oil demand by stimulating overall economic activity.
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