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US crude oil inventories are expected to have increased last week while refined product stockpiles likely fell, according to a preliminary Reuters poll of analysts
 "As Middle East tensions remain in focus, oil prices stabilise")
Representational image. Reuters File
Following a decline in the previous session, oil prices marginally increased on Tuesday as investors continued to evaluate the risk associated with Middle Eastern geopolitical worries.
By 0308 GMT, US West Texas Intermediate crude prices increased by 26 cents to $82.16 a barrel, while global benchmark Brent crude oil futures saw a 27-cent increase to $87.27 a barrel.
On indications that the recent escalation of hostilities between Israel and Iran had no immediate effect on oil supply from the area, both benchmarks dropped 29 cents during the previous session.
“The unwinding of geo-political risk premium has dented crude oil prices recently as supply was not disrupted meaningfully,” said Sugandha Sachdeva, founder of Delhi-based research firm SS WealthStreet.
But the evolving geopolitical landscape remains critical in steering crude oil prices, she said.
“While there are no indications of an imminent full-scale war between the countries involved, any escalation in tensions could quickly reverse the current trend,” Sachdeva added.
Similar to the US, ANZ analysts emphasised that fresh sanctions on Iran’s oil industry have been approved. These restrictions extend the present sanctions to cover international ports, ships, and refineries that knowingly process or transport Iranian crude.
Additionally, in response to Tehran’s missile and drone strike on Israel, EU foreign ministers decided in principle on Monday to increase sanctions against the country, according to Josep Borrell, the head of the bloc’s foreign policy.
“The geopolitical backdrop is still very fraught with so many risks at the moment, so clearly we’re going to see a lot of volatility until there’s a lot more clarity around it,” the ANZ analysts said in a podcast.
Israeli troops fought their way back into an eastern section of Khan Younis in a surprise raid, residents said on Monday, sending people who had returned to abandoned homes in the ruins of the southern Gaza Strip’s main city fleeing once more.
Investors are waiting for the release of the US gross domestic product figures and the March personal consumption expenditure data - the Fed’s preferred inflation gauge - later this week to assess the trajectory of monetary policy.
US crude oil inventories are expected to have increased last week while refined product stockpiles likely fell, according to a preliminary Reuters poll of analysts.
“Sticky US inflation figures, hawkish statements from key Fed officials, and rising US inventories are all acting as constraints on crude oil price growth,” Sachdeva said.
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English (US) ·