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WTI slips toward $82.80 amid Middle East escalation and profit-taking
WTI is trading around $82.8 even after US crude inventories fell by 7.2 million barrels for the week ending July 24, reversing the prior week’s build.
West Texas Intermediate crude is trading around $82.80 during early Asian hours on Thursday, edging lower despite renewed military escalation in the Middle East, as traders take some profits.
FXStreet notes that the move follows the US Federal Reserve’s decision to keep interest rates unchanged at 3.5% to 3.75% at its July policy meeting, with the central bank reiterating it will take necessary steps to meet its 2% inflation target.
The outlook for crude is also shaped by conflict risks tied to oil flows, including US statements about retaliation against Iran after an attack on a military base in Jordan, as well as pressure on Red Sea routes from Yemen’s Iran-backed Houthis.
Separately, the US Energy Information Administration reported US crude stockpiles for the week ending July 24 fell by 7.167 million barrels, compared with a 2.011 million barrel increase the prior week, while expectations had pointed to a decline of 2.5 million barrels.
Latest closeWTI crude $84.41 ▲6.5%