As tensions in the Middle East increased as a result of Houthi attacks on ships in the Red Sea, crude oil prices increased by 0.47% to close at 6163. Concerns over possible interruptions to oil supplies were raised by the circumstances. But Angola’s move to leave OPEC raised doubts about the organization’s capacity to sustain oil prices.
More shipping companies are avoiding the Red Sea as a result of the Houthi terrorist group’s continuous attacks on ships there, which are thought to be in retaliation for what they believe to be Israeli actions in Gaza. Oil prices increased as a result of this geopolitical unrest. The Energy Information Administration (EIA), on the other hand, recently released data showing that U.S. crude oil output hit a record 13.3 million barrels per day, up 200,000 bpd from the previous week.
The study also showed that, in contrast to market estimates of a 2.3 million-barrel reduction, oil stockpiles unexpectedly increased by 2.9 million barrels. Furthermore, there was a 1.7 million barrel increase in oil stockpiles at the delivery hub in Cushing, Oklahoma.
Refinery crude runs climbed by 403,000 barrels per day despite the increase in crude inventories, while refinery utilization rates increased by 2.2% in tandem. The United States’ petrol stockpile increased by 2.7 million barrels, more than the 1.2 million barrel increase that was predicted. At 11,552, the market showed evidence of short covering, as shown by a 3.64% decrease in open interest.
