WTI Crude Oil Prices Stay High Amid Falling US Stocks
Solid ECN – WTI crude oil prices stayed over $82 per barrel on Wednesday, following a near 2% increase the day before. This rise came unexpectedly due to a drop in U.S. crude oil supplies, suggesting strong demand. According to the Energy Information Administration, U.S. crude stocks fell by 6.368 million barrels last week, marking the most significant decline in three months.
This decrease contrasted with predictions of a 1.6 million barrel increase. Confirmatory government data aligned with previous industry reports from the American Petroleum Institute. Additionally, weaker U.S. business activity hints at possible interest rate cuts by the Federal Reserve, further boosting demand prospects.
Meanwhile, investors are also keeping an eye on tensions in the Middle East, particularly as Israel intensifies its actions in Gaza. Despite robust PMI data in Europe, expectations are growing that the UK and EU may soon reduce their economic stimulus.