Oil prices drop after high US crude stock offsets impact of Middle-East conflict; Brent at $89/bbl

livemint.com:

both Brent and WTI fell more than one per cent. Coming to domestic prices, crude oil futures last traded 0.18 per cent higher at ₹7,115 per barrel on the multi commodity exchange (MCX) platform.

Also Read: Oil prices ease for second day over Gaza ceasefire talks, Brent dips to $89: Analysts peg near-term range at $85-95/bbl -Refined products inventories rose unexpectedly with gasoline up by 700,000 barrels and distillate stocks by 1.7 million barrels. The US Energy Information Administration (EIA) data also showed a 2.1 million barrel per day (bpd) drop in oil product supplied, a proxy for fuel demand, and a 2.7 million bpd drop in crude oil exports.

-Separately, the US EIA sharply raised its forecast for crude oil output. It now expects an increase of 280,000 bpd to 13.21 million bpd in 2024 – which is higher from its earlier forecast of a 20,000 bpd increase in output.

-The US consumer price index (CPI) rose 0.4 per cent sequentially--higher than Wall Street estimates which faded away hopes of a rate cut in June, according to data released by the Labor Department's Bureau of Labor Statistics, -The commander of the Revolutionary Guard's navy in Iran said it could close the Strait of Hormuz if necessary. About a fifth of the volume of the world's total oil consumption passes through the strait daily.

-On Tuesday, Hamas said that an Israeli proposal on a ceasefire did not meet demands of Palestinian militant factions, but it would study the offer further and deliver its response to mediators, according to news agency Reuters. -A continuing conflict in the Middle-East could drag in other countries, particularly Hamas-backer Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC)