Oil prices fall as ME tensions ease

Oil prices were moderately lower on Wednesday as worries over conflict in the Middle East eased and business activity in the world’s largest oil consumer slowed, however, a fall in US crude oil inventories put a floor on those losses.

Brent crude futures were down 27 cents, or 0.31%, to $88.15 a barrel by1530 GMT, while US West Texas Intermediate crude futures fell 38 cents, or 0.46%, to $82.98. That reversed some of Brent’s gains earlier in the week, buoyed by a weaker US dollar.

“It appears the fundamentals that we trade with are leaning towards a little settling down in the Middle East,” said Tim Snyder, economist at Matador Economics.

Perceived de-escalation between Iran and Israel could remove another $5-10 a barrel in coming months, Goldman Sachs analysts said in a note.

US crude stockpiles fell by 6.4 million barrels to 453.6 million barrels.

Published in The Express Tribune, April 25^th, 2024.

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