Economy News – Baghdad
Oil prices experienced a rebound during early Asian trading on Wednesday, recovering from two-month lows recorded in the previous session, following a report from an industrial group indicating a reduction in U.S. crude stocks last week.
Brent crude futures increased by 27 cents, or 0.4%, reaching $73.29 per barrel by 01:34 GMT, while U.S. West Texas Intermediate crude futures rose by 25 cents, or 0.4%, to $69.18 per barrel.
Market sources reported on Tuesday, referencing American Petroleum Institute data, that U.S. crude stocks declined by 640,000 barrels in the week ending February 21. Official stock data from the United States is set to be released later today.
This information has alleviated some concerns regarding the excess supply of oil globally. Along with weakened economic reports from the United States and Germany, this sentiment contributed to a price increase of over 2% for oil on Tuesday.
Brent crude is currently positioned at its lowest level since December 23, while West Texas Intermediate crude marked its lowest closure since December 10.
Concerns have also mounted due to potential implications of U.S. President Donald Trump’s trade policies on China and other commercial partners, which may exert additional pressure on the U.S. economy.
Analysts at AN Z noted in a client memorandum that the recent data has reduced apprehensions about a near-term decline in oil supplies, despite renewed U.S. sanctions on Iran.
Rorre Johnston, an analyst at Commune Contesty, indicated that although U.S. political actions may lead to a reduction of Iranian crude oil exports by up to one million barrels per day, any supply losses from the Middle East are likely to be countered by OPEC+ members who are expected to increase market supplies in the coming months.
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