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27/06/24
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Oil Prices Remain Steady
On June 27, oil prices remained steady to a significant extent as there were fears about slow demand from the United States based on a surprise build in the world’s leading oil consumer’s stockpiles. This also staved off supply concerns fueled by the Middle East’s escalating conflict.
Around 10:05 a.m. (GMT), Brent crude oil futures rose by 0.5 percent, while the U.S. West Texas Intermediate crude futures recorded a 0.5 percent uptick. The two benchmarks were able to settle somewhat higher on June 26.
The Energy Information Administration’s (EIA) data showed that crude oil stockpiles rose by 3.6 million barrels last week, relative to analysts’ expected decline by 2.9 million barrels. Gasoline stockpiles increased by 2.7 million barrels relative to a forecast of 1 million barrels drawdown. It seems demand remains soft based on rising crude and fuel inventories signals.
Declines in oil prices were limited due to worries over the Israel-Hamas war in Gaza spreading to Lebanon. The Israel-Lebanon border is being monitored by traders, as both Israel and Hezbollah traded fire across it for months. Markets are concerned about potential disruption in crude oil supplies if an Israeli offensive in Lebanon triggers a direct confrontation with Iran.
According to President Tayyip Erdogan, Turkey stood in solidarity with Lebanon, calling for a show of support in the region. On June 26, Israeli forces pounded a number of areas across Gaza, with residents reporting serious fighting overnight in Rafah.
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