“Oil prices fall after negative US government report on crude oil supplies – ReutersOil prices fell after the US government released data on increased inventories of crude oil, gasoline and distillates. At the same
time, concerns remain about a possible Israeli strike on Iranian nuclear facilities.”, — write: unn.ua
DetailsAccording to latest data from the Energy Information Administration, released on Wednesday, US crude oil, gasoline and distillate inventories unexpectedly rose in the week ended May 16.
Brent futures fell 8 cents to $65.30 a barrel by 10:52 a.m. ET (2:52 p.m. GMT). US West Texas Intermediate crude fell 3 cents to $62.00.
Crude oil inventories rose by 1.3 million barrels, gasoline inventories by about 800,000 barrels, and distillate inventories by about 600,000 barrels.
“The EIA (Energy Information Administration) report recorded an increase in crude oil, gasoline and distillate prices, which the market did not like,” said Giovanni Staunovo, an analyst at the Swiss Global Financial Institute (UBS).
AdditionallyUS Energy Information Administration data led to a decrease in oil futures after they were supported earlier in the session by news that US intelligence suggests Israel is preparing to strike Iranian nuclear facilities.
CNN, citing officials, adds that it is unclear whether Israeli leaders have made a final decision.
“Such an escalation would jeopardize not only Iranian supplies, but also supplies in much of the wider region,” strategists at the Netherlands’ largest banking group ING said.
Oil prices fell due to demand and negotiations between Russia, Ukraine and the US with Iran20.05.25, 11:34 • 3710 views
Given that Iran exports more than 1.5 million barrels per day, concerns about supply disruptions have also contributed to rising prices, according to UBS analyst Staunovo.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries (OPEC), and an Israeli attack could disrupt the flow of oil from the country.
There are also concerns that Iran may respond by blocking the flow of oil tankers through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the United Arab Emirates export crude oil and fuel.