In recent days, oil prices have been on a downward trend due to a variety of factors. While concerns over conflict in the Middle East and slowing business activity in the world’s largest oil consumer have contributed to this decline, a decrease in U.S. crude oil inventories has helped limit these losses.
On Wednesday, Brent crude futures dropped 27 cents to $88.15 a barrel by 11:30 a.m. EDT, while U.S. West Texas Intermediate crude futures fell 38 cents to $82.98. This reversal of some of Brent’s earlier gains in the week was driven by weaker U.S. dollar, according to economist Tim Snyder at Matador Economics. However, he also noted that the fundamentals suggested a calming down in the Middle East, potentially removing $5-10 a barrel from the market in the coming months.
Despite this positive outlook for the region, U.S. crude stockpiles saw a significant drop of 6.4 million barrels to 453.6 million barrels in the week ended April 19, against analysts’ expectations for an increase of 825,000 bar
