Fundamental Comment

Oil prices fluctuate after rise in US crude inventories

Oil prices fluctuate

Crude oil prices fluctuated on Wednesday Data on due the rise in U.S. crude inventories, disappointing Chinese industrial report and the ongoing trade tensions, but oil prices have received some support from tensions in the Middle East region.

Crude oil futures retreated slightly to $61.29 a barrel, while Brent crude hovered near the session’s open around $71.00 a barrel.  

US crude stockpiles rose by 8.6 million barrels to 477.8 million barrels, while analysts had predicted a drop of 800,000 barrels, According to the US Petroleum Institute.

China's industrial output growth recorded just to 5.4% per annum in April, down from its highest level in four and a half years in March.

Trade tensions between the United States and China continued to dominate investors’ vibes, despite attempts from President Trump to calm down the melting situations.

On the other side, oil prices have received significant support following the tensions in the Middle East region as a result of Saudi Arabia's announcement that two Saudi oil tankers were hit by a drone.

Also, OPEC announced on Tuesday that the global demand for oil will increase in the future beyond what was expected this year.

The U.S. dollar index resumed its rise for a third straight session to 97.45, resuming its rebound from Monday’s bottom of 96.79.

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