Oil Loses Ground On Increase in US Stocks
Oil prices dipped early today after industry data showed US crude inventories increased more than expected, though declines were capped as the market watched diplomatic efforts in the Middle East after Israel continued attacks on Gaza and Lebanon.
Business Day reports that Brent crude futures dipped 20 cents, or 0.3%, to $75.84 a barrel by 3.30 am GMT.
US West Texas Intermediate crude futures shed 20c, or 0.3%, to $71.54 a barrel.
Crude futures settled higher in the two previous sessions this week.
ING analysts said the market continues to wait for Israel’s response to Iran’s missile attack, adding that the price strength on Tuesday was possibly due to the lack of outcome from US secretary of state Antony Blinken’s latest visit to Israel.
A senior state department official said Blinken held extended conversations with Israeli Prime Minister Benjamin Netanyahu and senior Israeli leaders, urging them to get more humanitarian aid into Gaza.
Israel on Tuesday also confirmed it had killed Hashem Safieddine, the heir apparent to late Hezbollah leader Hassan Nasrallah who was killed in September in an Israeli attack targeting the Iran-backed Lebanese militant group.
