During the Asian session on Thursday, West Texas Intermediate (WTI) crude oil prices edged lower to approximately $80.30, stepping back from a recent peak of $81.65. This decline follows a surprise increase in US crude stockpiles, which has raised concerns about demand weakening in the world’s largest oil consumer.
According to the US Energy Information Administration’s latest data released on Wednesday, crude oil stocks in the US rose by 3.591 million barrels for the week ending June 21. This figure contradicted market expectations of a 3.000 million-barrel decrease.
Geopolitical tensions in the Middle East and Ukraine continue to add uncertainty to oil markets. Israeli Prime Minister Benjamin Netanyahu announced that the most “intense” phase of the Gaza conflict is nearing its conclusion. Concurrently, Russia has condemned the US for what it termed a “barbaric” strike in Crimea, utilizing US-provided missiles, resulting in casualties, including children, and numerous injuries.
Despite these developments, US crude oil imports spiked last month to their highest level in nearly two years. Refiners increased acquisitions of heavy crudes from Canada and Latin America in preparation for the summer driving season. In May, US crude oil imports reached 3.1 million barrels per day (bpd), marking the highest since July 2022, according to ship tracking service Kpler. Import levels have remained robust this month, averaging around 2.9 million bpd.
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WTI Crude Oil Edges Higher Amid Geopolitical Tensions and Summer Demand
