Oil prices fell on Wednesday for the first time in four sessions, as investors awaited developments in the escalating conflict in the Middle East and its potential impact on global supplies, before prices pared some of their losses following the release of the International Energy Agency's monthly report.
The agency's report indicated that global oil markets may face difficulty in meeting demand this year, given the continued geopolitical tensions related to the Iran war, which supported prices and limited the pace of decline witnessed at the beginning of trading.
According to market data, Brent crude futures for July delivery fell by 0.5%, or 56 cents, to $107.21 a barrel, after earlier dropping to $106.09 a barrel.
Nymex crude oil futures for June delivery also fell by 0.75%, or 78 cents, to $101.40 a barrel, after touching $100.56 during the session.
In a related context, data from the American Petroleum Institute showed that crude oil inventories in the United States fell by about 2.188 million barrels during the week ending May 12, indicating continued strong demand or declining supply in the world’s largest oil-consuming economy.
Markets are currently focused on the anticipated official data from the US Energy Information Administration, which may provide clearer indications of supply and demand levels and price trends in the coming period.
