Oil prices steadied on Thursday after a two-day decline, as US crude inventories saw a significant increase, and the market watched closely for potential developments in the Middle East. West Texas Intermediate (WTI) futures traded just above $73 per barrel, while Brent crude settled below $77 following a 0.5% dip on Wednesday.
US crude stockpiles swelled by 5.8 million barrels last week, marking the largest rise since late April, according to government data. However, gasoline inventories dropped, reflecting the ongoing shifts in the energy market.
Tensions in the Middle East remain high, with concerns about Israel’s potential response to Iran’s recent missile attack, sparking fears of a broader conflict. While US President Joe Biden has urged Israel to refrain from striking Iran’s oil facilities, Tehran has issued warnings, stating its readiness to launch thousands of missiles if provoked.
In addition to geopolitical tensions, concerns over China’s economy continue to weigh on the market. The lack of significant stimulus measures from Beijing earlier this week led to a broad market selloff, including in the oil sector. The central government has announced a new briefing on fiscal policy, scheduled for Saturday, which could impact market sentiment.
