Oil prices closed lower due to concerns over demand.
For the week ending August 23, U.S. crude oil inventories fell by 800,000 barrels, far less than the 2.8 million barrels expected.
Commercial oil reserves in the United States decreased last week, but less than the market had anticipated.
Oil prices dropped again on Wednesday, driven by concerns over sluggish demand and a market not focusing on the tensions in the Middle East.
Brent crude from the North Sea, for October delivery, fell by 1.13% to $78.65 per barrel.
Meanwhile, West Texas Intermediate (WTI) for the same delivery month dropped by 1.33% to $74.52 per barrel.
According to various reports, production has been partially or fully halted at several sites in Libya due to internal tensions in the country.
In the Middle East, the Israeli army launched a large-scale operation on Wednesday in the northern West Bank, a territory occupied since 1967.
Israeli forces reported that they “eliminated nine terrorists,” and the Palestinian Red Crescent also reported nine Palestinian deaths, along with 15 injuries.
The potential involvement of Iran in the conflict puts 3 million barrels at risk, with an additional million barrels from Libya. Despite this, WTI crude has not surpassed $80 per barrel. The tension in Libya between rival political factions is expected to be short-lived, and concerns about supply disruptions have eased somewhat. This indicates that there are significant concerns about crude oil demand.
The U.S. Energy Information Administration’s (EIA) report on commercial crude oil reserves did not support prices either.
For the week ending August 23, U.S. crude oil inventories fell by 800,000 barrels, far less than the 2.8 million barrels expected by analysts, according to consensus estimates.
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