Oil prices rose slightly on Wednesday due to an unexpected decline in U.S. crude inventories last week, signaling improved demand. However, ongoing tensions in the Middle East kept markets on edge.
Brent crude futures increased by 0.06% to $88.47 per barrel, while West Texas Intermediate crude futures gained 0.1% to $83.44 per barrel. The American Petroleum Institute reported a 3.237 million barrel drop in U.S. crude stocks, contrasting analysts’ expectations of an 800,000 barrel increase.
Official U.S. data on oil and product stockpiles, due later today, will provide further confirmation of the drawdown.
Meanwhile, U.S. business activity slowed in April, suggesting that interest rate cuts may be necessary to support the economy. Lower interest rates could boost economic growth and ultimately increase oil demand from the world’s largest consumer.
Analysts continue to monitor conflicts in the Middle East, although their impact on oil supplies remains limited for now.