ENTRE News – Oil prices rose slightly in early trading Wednesday (19/6) morning amid concerns over escalating conflicts in Europe and the Middle East. At the same time, markets are anxious about demand following an unexpected increase in US crude oil inventories.
Reported by Reuters, the price of Brent crude oil futures for August delivery rose 6 cents to US$85.39 per barrel at 00.16 GMT. Strengthening also occurred in the price of US West Texas Intermediate crude oil for June, rising 10 cents to US$81.67 per barrel.
According to Russian officials and Ukrainian intelligence sources, both benchmark prices rose more than US$1 in the previous session after a Ukrainian drone attack caused an oil terminal fire at a major Russian port FOR4D.
Meanwhile, in the Middle East, Foreign Minister Israel Katz warned of an “all-out war” with Lebanon’s Hezbollah, even as the US sought to avoid a wider conflict between Israel and Iran-backed Hezbollah.
Escalating wars in the region raise the possibility of disruption to crude oil supplies from major producers. According to market sources citing American Petroleum Institute figures on Tuesday, US crude oil stocks rose by 2.264 million barrels FOR4D in the week ended June 14. This figure restrained further increases in oil prices.
Analysts polled by Reuters had expected a decline in crude stocks of 2.2 million barrels. Reuters sources also said gasoline inventories fell by 1.077 million barrels, while distillates rose by 538,000 barrels.
