Oil Holds Two-Day Loss as Report Points to Rising US Inventories
(Bloomberg) -- Oil held a two-day decline after an industry report pointed to a gain in US crude stockpiles, although simmering tensions in the Middle East and ongoing OPEC+ curbs are expected to cap losses.
West Texas Intermediate was steady above $85 a barrel after closing 1.4% lower on Tuesday. Brent traded near $89. The American Petroleum Institute reported crude inventories rose by 3.03 million barrels last week, according to Oilprice.com. Official government figures are due later Wednesday.
If the Energy Information Administration confirms the increase in overall crude stockpiles, it will be a third weekly expansion. The API also reported a modest gain in Cushing inventories, but a decline in gasoline supplies.
![](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ikqTskSvvN50/v2/-1x-1.png)
Oil is still up 19% this year as OPEC+ cuts supply and geopolitical tensions across the Middle East present bullish tailwinds. The market is bracing for Iran’s response to a suspected Israeli attack on its consulate in Syria last week and Hezbollah has warned it’s ready for war.
“Upside risk to oil still lies in geopolitics with an escalation of the Israel and Iran conflict the biggest lurking danger,” said Gao Mingyu, Beijing-based chief energy analyst at SDIC Essence Futures Co. However, “the negative impact of a higher oil price on demand and inflation could be the trading theme going forward,” she added.
Investors will be watching US inflation data later Wednesday for clues on the path forward for interest rates, and they will get a broader snapshot on the outlook for the oil market when OPEC and the International Energy Agency release monthly reports this week.
©2024 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news
![Energy Connect Story Thumbnail](/images/default/oilandgasgeneric.jpg?anchor=center&mode=crop&width=240&height=135&format=webp)
Woodside Looks to Build ‘Dream Team of LNG’ at Acquired US Plant
![Eni](/media/zrnnqrv2/eni.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132771144027800000&format=webp)
Eni signed exclusivity agreement with KKR for the potential sale of a minority stake in Enilive
![Woodside](/media/tq5juvf3/woodside.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132834340121370000&format=webp)
Woodside's quarterly revenues exceed $3 billion backed by strategic milestones
![BloomburgMedia_SGUY72T0AFB400_22-07-2024_06-22-21_638572032000000000.jpg](/media/cfwjsnpi/bloomburgmedia_sguy72t0afb400_22-07-2024_06-22-21_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661029417000000&format=webp)
Oil Rises as Biden Quits US Race, Blazes Threaten Canadian Wells
![BloomburgMedia_SGZSI8T1UM0W00_22-07-2024_07-32-52_638572032000000000.jpg](/media/yq5nxplm/bloomburgmedia_sgzsi8t1um0w00_22-07-2024_07-32-52_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661071728370000&format=webp)
Kamala Harris Seen as Tougher Oil Industry Opponent Than Biden
![Oil And Gas Refinery Plant](/media/czhapv55/oil-and-gas-refinery-plant.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132900920345270000&format=webp)
PetroChina joins Oil and Gas Decarbonisation Charter
![GALP](/media/1dpp15bu/galp.png?anchor=center&mode=crop&width=240&height=135&rnd=133661151184570000&format=webp)
Galp reports 16% rise in Q2 2024 net profit amid higher oil prices and lower production costs
![BloomburgMedia_SGXF3CT0AFB400_21-07-2024_06-00-10_638571168000000000.jpg](/media/pp5dhnc3/bloomburgmedia_sgxf3ct0afb400_21-07-2024_06-00-10_638571168000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133660152100830000&format=webp)
Nigeria’s Dangote Refinery Targets Output of 550,000 Barrels a Day
![BloomburgMedia_SGUD23DWLU6800_22-07-2024_07-49-38_638572032000000000.jpg](/media/ey5kep5x/bloomburgmedia_sgud23dwlu6800_22-07-2024_07-49-38_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661081780600000&format=webp)
Oil Falls With Broader Commodity Weakness Amidst Listless Trade
![BloomburgMedia_SGVJS1T0G1KW00_19-07-2024_20-00-09_638569440000000000.jpg](/media/5yomaqhj/bloomburgmedia_sgvjs1t0g1kw00_19-07-2024_20-00-09_638569440000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133658928099030000&format=webp)
Occidental Planning to Sell Bonds in Up to Five Parts
![CSIS Thumbnail](/media/o0acqjyg/csis_thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133566075809700000&format=webp)
CSIS: long-term LNG demand to reshape global export capacity growth
![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
![OIL INDIA Thumbnail (1)](/media/oddlww2x/oil-india-thumbnail-1.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133506537128730000&format=webp)
Oil India charts the course to ambitious energy growth
![DNV Thumbnail](/media/chkphnjn/dnv-thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133491856590700000&format=webp)
Maritime sector is stepping up to the challenges of decarbonisation
Partner content
![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
![New Lng Ship Web 17829](/media/vjrjyypa/new-lng-ship-web-17829.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133179936218300000&format=webp)
Back to the Future(s): the best commodities benchmarks are still physically settled
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)
Essar outlines how its CBM contribution is bolstering for India’s energy landscape
![HNC 7611 V2](/media/0dqbya15/hnc_7611_v2.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133517899616530000&format=webp)