WTI closes at $2.03 as crude inventories fall more than expected: InfoQuest

The West Texas Intermediate (WTI) crude contract in the New York market closed more than 2% higher on Wednesday (August 7) ​​after the United States revealed that crude oil inventories fell more than expected. In addition, the market also received support from the expected that the tense situation in the Middle East and Libya’s cut in oil production may affect oil supplies in the Middle East.

• The West Texas Intermediate crude contract is due for delivery in September. Oil prices rose $2.03, or 2.77%, to close at $75.23 a barrel.
• Brent crude futures for October delivery rose $1.85, or 2.42%, to close at $78.33 a barrel.

The U.S. Energy Information Administration said weekly U.S. crude oil inventories fell by 3.7 million barrels, more than the 700,000-barrel draw analysts had expected in a Reuters poll, and a six-week decline.

Libya has cut oil production from the Sharara oil field by 300,000 barrels per day, news that has raised concerns about supply shortages and supported oil prices. Libya's National Oil Corporation declared force majeure on the Sharara oil field yesterday. Production from the aforementioned oil fields will begin to be reduced gradually. Due to the impact of the protest event

A force majeure clause is a clause in a contract designed to relieve one party of legal obligations. When uncontrollable events occur, such as labor disputes, protests, terrorism, and natural disasters.

The situation in the Middle East remains tense and is expected to affect oil supplies in the Middle East, a region that produces up to a third of the world's crude oil, after Iran announced that it would take revenge on Israel and the United States after assassinating Hamas and Hezbollah leaders.

Michel Horowitz, an analyst for the international newspaper Le Peak, said that Yahya Sinwa, the new political leader of Hamas, is more radical and less conciliatory than Mr. Ismail Haniyeh, who was assassinated in Tehran last week. Mr. Sinwa led the attack on Israel on October 7 last year.

Iran and Hamas accused Israel of being behind Haniyeh's assassination, but Israel did not come out to accept or reject it in any way.

By InfoQuest News Agency (August 08, 2024)

Tags: WTI, WTI, Oil Price