Investing.com – Oil prices fell in Asian markets today. This is because industry data indicates an increase in US inventories. However, the losses were limited by Middle East concerns.
U.S. oil inventories rose and rose more than expected in the week of May 3, industry data showed on Tuesday, tempering expectations about tight global supply.
Israel continues to attack the city of Rafah in the southern Gaza Strip. Meanwhile, ceasefire negotiations with Hamas have not made any progress.
At 21:35 EST (01:35 GMT), the index due in July was down 0.4% at $82.82 per barrel, while it was down 0.4% at $77.76 per barrel.
Appreciating money continues to pressure oil prices because Federal Reserve officials are not concerned about expectations of interest rate cuts this year.
US oil inventories increased more than expected
Data on Tuesday showed that US oil inventories rose by 0.5 million barrels in the week ending May 3, contrary to analysts' expectations for a draw of 1.4 million barrels.
This data comes after an increase in US oil reserves. The number increased more than expected last week. This has raised speculation that the global oil market will not be as tight as initially expected.
Data from the API often announces similar numbers to which will be published today
Strong US supplies have tempered expectations of a tightening global oil market. Especially since recent data shows that US oil production has returned to its highest level recorded in February.
The ceasefire between Israel and Hamas remains uncertain.
Israel continued its attack on Rafah on Tuesday. At the same time, it also captured important border crossing points in the city.
The move comes as Hamas officials reportedly accepted a recent ceasefire offer in Gaza that was rejected by Israel. Hamas also expressed its anger over the Israeli attack on Rafah. Such attacks have undermined any potential progress towards peace.
However, US officials said a ceasefire agreement could still be reached. After representatives of both sides held talks in Cairo
The prospect of continued unrest in the Middle East helped support oil prices. Amidst the belief that the unrest will affect supplies in the aforementioned region.
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