US crude oil inventory data could pressure prices – London Business News | Londonlovesbusiness.com

On Wednesday, oil prices pared recent losses due to rising tensions in the Middle East.

The appointment of a new Gaza leader by Hamas has heightened concerns about more confrontations in the region.

However, the upward momentum could be constrained by weak demand fears and sluggish growth from top oil importer China. In this regard, China’s crude oil imports plummeted to the lowest since September 2022.

Oil prices were also under pressure from a modest increase in API crude inventory data, halting multi-week streaks of sharp declines and easing supply concerns. US crude oil inventories increased by 180,000 barrels for the week ending August 2, along with rises in gasoline, distillate, and Cushing inventories.

Elsewhere, broader market downturns and fears of a US recession also underpinned the recent drop in oil prices, overshadowing concerns about Middle Eastern supply disruptions and reduced production in Libya’s Sharara oilfield.

Later today, the EIA will release its figures on crude and gasoline stocks. If the reports indicate an increase in stockpiles, this could further extend the selling pressure and limit the crude’s gains.