Mumbai, 20 Jun (Commoditiescontrol): Brent crude futures edged higher in early trade on Thursday as escalating conflict in Gaza supported prices, while U.S. crude futures dipped due to expectations of rising oil inventories. Brent crude futures for August delivery increased by 8 cents, reaching $85.15 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude for June delivery fell by 27 cents, or 0.3%, to $81.30 per barrel.
Trading activity remained subdued due to the U.S. federal holiday, Juneteenth.
The increase in Brent crude prices came as Israeli troops, supported by tanks, warplanes, and drones, advanced further into the Gaza Strip's city of Rafah on Wednesday. The offensive resulted in the deaths of eight people, according to residents and Palestinian medics. The intensifying conflict in the Middle East has raised concerns about potential disruptions to oil supplies from the region, thereby supporting crude prices.
Conversely, WTI crude prices fell ahead of the U.S. government's delayed oil inventories report, expected on Thursday at 11 a.m. EDT (1500 GMT) from the Energy Information Administration (EIA). This delay was due to the Juneteenth holiday. According to an industry report released on Tuesday, U.S. crude stocks increased by 2.264 million barrels for the week ending June 14, based on data from the American Petroleum Institute. Meanwhile, gasoline inventories saw a decline.
The mixed market reactions reflect the ongoing tension between geopolitical risks, which support oil prices, and domestic inventory builds, which exert downward pressure on WTI crude. Traders and analysts continue to monitor these developments closely as they navigate the volatile oil market.
(By Commoditiescontrol Bureau: 09820130172)
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