FX.co ★ Oil Pulls Back after EIA Data

WTI crude oil futures have shifted course, declining to approximately $62 per barrel, following an unexpected increase in U.S. crude inventories. The Energy Information Administration (EIA) disclosed a 1.328 million barrel rise in crude stocks, contradicting forecasts that anticipated a reduction of 1.85 million barrels. Similarly, gasoline and distillate inventories saw increases, despite predictions of a downturn. Prior to this inventory report, WTI oil prices had surged to $62.73 driven by geopolitical tensions sparked by potential Israeli military action against Iranian nuclear sites, raising concerns about possible disruptions in the Middle East supply chain. The situation remains tense as Iran may retaliate by threatening the transport of oil through the strategic Strait of Hormuz. Meanwhile, global uncertainties have been compounded by stalled ceasefire negotiations between the United States and Russia regarding the conflict in Ukraine.