API Reports Surge in US Stockpiles, Oil Softens!
Oil prices weakened slightly on Wednesday morning after data from the American Petroleum Institute (API) showed a rise in US crude inventories. Market sentiment shifted to a more cautious tone as higher inventories indicated tighter near-term supply.
Brent fell US$1.15, or 1.11%, to US$102.27 per barrel at 01:08 GMT. Meanwhile, WTI fell US$1.54, or 1.6%, to US$94.67 per barrel.
According to market sources citing the API, US crude inventories rose by 6.56 million barrels in the week ending March 13. This figure was well above market expectations, after a Reuters poll had previously projected an increase of around 380,000 barrels for the same period.
On the global supply side, Iraq stated that it had reached an agreement with the Kurdistan Regional Government to resume oil exports to the energy hub of Ceyhan, Turkey, starting Wednesday. Flows from the port of Ceyhan are expected to resume at 10:00 a.m. local time (07:00 GMT), adding to market focus on the recovery of regional export flows.
In Libya, the National Oil Corporation stated that flows from the Sharara field were gradually being diverted through an alternative pipeline following a fire. The company confirmed that production remained operational and there were no casualties, allaying concerns about broader supply disruptions.
Meanwhile, geopolitical factors remained a driving force behind volatility, particularly regarding Iran and the Strait of Hormuz. Tehran confirmed the death of Iranian security chief Ali Larijani, while the US military said it struck targets along the Iranian coast near the Strait of Hormuz due to the threat of anti-ship missiles to international shipping. China Futures analyst Mingyu Gao believes these developments raise hopes that the conflict could end sooner, although the market is still monitoring the risk of escalation and shipping disruptions. (asd)
Source: Newsmaker.id
