Oil prices dropped for a third consecutive day on Wednesday, pressured by expectations of increased US oil stockpiles and concerns about slowing global demand.
- Prices were down slightly, with Brent crude for June trading at $89.81 a barrel and US crude for May at $85.17 a barrel.
This week’s decline comes despite ongoing geopolitical tensions in the Middle East. Analysts believe significant sanctions on Iranian oil exports are unlikely following a recent attack on Israel.
- The drop is attributed to fading hopes for interest rate cuts by major central banks.
Federal Reserve officials, including Chair Jerome Powell, gave no indication of potential rate cuts on Tuesday, disappointing investors. Additionally, Britain’s March inflation data suggests a delay in a rate cut by the Bank of England.
However, inflation slowdown in the eurozone strengthens the possibility of a European Central Bank rate cut in June.
Also Read: Mortgage Rates on Hold in March Despite Fed Efforts
Other factors contributing to the price decline include:
- A potential increase in US crude oil inventories.
- Mixed economic data from China, indicating fragile domestic demand.
Official US inventory data is expected later today.
Production maintenance at a Kazakh oilfield in May could also impact prices.
