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Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $80.80 on Wednesday. The black gold edges lower on rising crude inventories in the United States and easing geopolitical tensions in the Middle East.
Crude oil inventories in the United States for the week ending April 26 rose by 4.906 million barrels from a 3.23 million barrel draw in the previous week. The market consensus estimated that stocks would decrease by 1.5 million barrels, according to the American Petroleum Institute (API) on Wednesday.
Traders increase their bets that the Federal Reserve (Fed) might delay the interest rate cut and maintain the current benchmark rate for longer amid the robust economy and sticky inflation in the US. This might lead to a stronger US Dollar (USD) and exert some selling pressure on the USD-denominated oil.
Furthermore, the hope that a ceasefire agreement between Israel and Hamas might be in reach, reduces the fear of a wider conflict in the Middle East. However, Israeli Prime Minister Benjamin Netanyahu downplayed expectations that a proposed hostage deal would prevent an attack on the southern Gaza city of Rafah, per CNBC. The escalating geopolitical tensions in the Middle East might raise concern about oil supply disruption in the region and boost the price of black gold.
WTI US OIL
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