Slight Rise in Oil Prices as Markets Focus on U.S. Inventory Data

SadaNews - Oil prices rose slightly after a mixed report on U.S. inventories was released, as traders continued to focus on broader supply forecasts, with the "OPEC+" alliance maintaining its production increases and the expansion of U.S. output.

Brent crude climbed close to $66 a barrel after finishing Tuesday's trading with little change, while West Texas Intermediate remained above $62.

The "American Petroleum Institute" reported a decrease of 1.8 million barrels in the storage center in Cushing, Oklahoma, last week, along with a drop in product inventories including gasoline. In contrast, U.S. oil inventories were estimated to have increased, yet they remain close to seasonal lows.

Expansion in U.S. Supplies

Crude remains under pressure from expectations of a surplus over the coming months, as the "OPEC+" alliance has raised production in an attempt to regain its market share.

In the United States, official forecasts indicate that domestic crude oil production will reach record levels this year, supported by increased supplies from offshore fields.

Meanwhile, the latest series of Ukrainian drone strikes on Russian oil infrastructure have reduced local refining operations and increased crude exports.

According to ship-tracking data monitored by "Bloomberg", flows of untreated crude oil remained close to their highest levels in 16 months over the past four weeks.

Analysts from "ANZ Group Holdings Ltd", including Daniel Hynes, wrote in a research note: "Unless the physical market shows signs of slowing through rising inventories, investors are likely to overlook the impact of production increases."