Middle East Concerns Drives Up Prices of Brent and WTI

resurgence of Middle East Concerns Drives Up Prices of Brent and WTI

US West Texas Intermediate (WTI) crude futures rose by 76 cents, or 0.9 percent, to $83.57 per barrel, while Brent crude futures climbed 99 cents, or 1.1 percent, to sell at $89.01 a barrel.

After declaring that it would remove inhabitants from Rafah in the southern Gaza Strip, Israel increased its bombings on the city during the night.
Despite warnings from partners that an all-out assault could result in huge casualties, the nation went ahead and started it. The supply of oil has not been impacted, though.

Analysts covering the market observed that traders are still unsure about how much geopolitical risk to factor in following Israel and Iran’s retreat from more direct conflict last week.
The US Treasury Secretary’s remarks that the US economy was doing well helped to support prices as well.
Speaking to Reuters, Ms. Janet Yellen stated that the US economy was probably growing faster than its quarterly numbers, which were worse than anticipated.

Prior to Ms. Yellen’s remarks, data indicating that first-quarter economic growth slowed more than anticipated had put pressure on oil prices.
The fastest-rising inflation in the world’s largest economy indicated that an interest rate drop by the US Federal Reserve before September was unlikely.
Ms. Yellen added that additional data may allow for a revision of the US GDP growth rate for the first quarter, and that inflation will relax back to more normal levels following the economy’s worst performance in almost two years due to a number of factors.

According to Energy Information Administration (EIA) statistics released on Wednesday, US distillate stockpiles increased and gasoline (petrol) stockpiles decreased in the week leading up to April 19. This news puts additional pressure on the overall market.
According to the EIA report, US crude inventories unexpectedly dropped last week while exports increased.
Concerns regarding US gasoline demand are raised by indications that US corporate activity may be slowing down in April as well as by stronger-than-expected job and inflation figures, which raise the likelihood that the US central bank will postpone its planned interest rate reductions.