Latest News

Prices of oil rise due to US data and Middle East tensions

Prices of oil rise due to US data and Middle East tensions

Early trading on Thursday saw oil prices rise on the back of a drop in U.S. gasoline inventories, and an increase in tensions in Middle East.

Brent crude futures gained 40 cents or 0.57% to $71.18 a bar by 0213 GMT. U.S. West Texas Intermediate Crude (WTI), however, rose 34 cents or 0.51% to $67.50.

Prices rose after U.S. data revealed a greater-than-expected decline in distillate stocks for the last week.

Last week, distillate inventories (which include diesel and heating oils) fell by 2.8 millions barrels, which was more than the 300,00-barrel decline expected in a survey.

The U.S. crude oil inventories rose by 1.7 million barrels compared to the expected increase of 512,000 barrels.

The global risk premiums increased after Israel broke a two-month ceasefire on Wednesday by launching a new operation in Gaza.

In retaliation to the attacks by the Houthi group on ships in Red Sea, the U.S. also continued airstrikes against Houthi targets throughout Yemen. Trump has also promised to hold Iran accountable for any future Houthi attack.

The Ukrainian president Volodymyr Zelenskiy stated on Wednesday that a ceasefire could be reached quickly to stop the attacks on energy installations in the war against Russia. This could lead to an easing of sanctions as well as the return of Russian supplies to the market.

Steve Witkoff is Trump's Middle East Envoy. He has stated that another round of negotiations between Russian and U.S. representatives aimed at ending the war will take place on Sunday in Saudi Arabia.

The Wall Street Journal reported Wednesday that Chevron, in the Americas region, has asked for an additional 60 days beyond the original April 1, deadline to wind down operations in Venezuela.

Reports indicate that Venezuela's PDVSA state-owned oil company is planning to continue oil exports from its joint venture partnership with Chevron. (Reporting and editing by Tom Hogue; Colleen Hogue, Reporting)

(source: Reuters)