Oil prices experienced a modest decline on Wednesday morning, following reports from sources referencing American Petroleum Institute data that indicated a rise in U.S. crude inventories. Brent futures declined by $1.15, representing a 1.11% decrease, settling at $102.27 per barrel by 0108. Meanwhile, U.S. West Texas Intermediate crude fell by $1.54, or 1.6%, to $94.67. U.S. crude inventories increased by 6.56 million barrels for the week ending March 13, according to market sources referencing API data released on Tuesday.
A poll indicated that U.S. crude oil inventories were anticipated to increase by approximately 380,000 barrels in the week ending March 13. Regarding supply dynamics, the Iraqi oil minister announced on Tuesday that an agreement has been established between the Iraqi government and the Kurdistan Regional Government to recommence oil exports to Turkey’s Ceyhan energy hub beginning Wednesday. Oil flow from Ceyhan port is anticipated to commence at 10 a.m. on Wednesday.
Libya’s National Oil Corporation announced early on Wednesday that the flow of oil from the Sharara oilfield has been gradually redirected through alternative pipelines following a fire incident. The corporation confirmed that production continues unabated and reported no casualties. Tehran confirmed on Tuesday that Iran’s security chief Ali Larijani was killed by Israel, marking the most significant figure targeted since the onset of the U.S.-Israeli conflict. Additionally, a senior Iranian official indicated that Iran’s new supreme leader has dismissed de-escalation proposals relayed by intermediary nations.
The United States military announced on Tuesday that it had focused its efforts on sites along Iran’s coastline near the Strait of Hormuz, citing concerns that Iranian anti-ship missiles represented a threat to international shipping in the region. The recent passing of Iranian power broker Larijani, coupled with U.S. military strikes on Iranian coastal positions near the Strait of Hormuz, has generated optimism regarding a potential resolution to the conflict, according to Mingyu Gao.