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Oil prices turn lower after US inventories rise
Oil prices fell during trading on Wednesday, May 21, after US government data revealed a build-up in US crude oil and fuel inventories ahead of a period that typically sees increased summer driving, which boosts US demand.
This decline follows a roughly 1% rise in oil prices earlier in the day, following a CNN report about Israeli preparations for a potential strike on Iranian nuclear facilities, which raised concerns about supplies from the Middle East.
Brent crude futures fell 47 cents, or 0.72%, to $64.91 a barrel at the settlement.
US crude futures fell 46 cents, or 0.74%, to settle at $61.57 a barrel, according to Reuters.
This comes after data released by the US Energy Information Administration on Wednesday showed that US crude oil inventories increased by 1.3 million barrels to 443.2 million barrels last week.
US gasoline inventories also increased by about 800,000 barrels during the week ending May 16, and distillate inventories rose by about 600,000 barrels during the same period.
The data caused oil prices to reverse their upward trend after a CNN report on Tuesday, citing informed US officials, said that new intelligence obtained by the US indicated that Israel was preparing to strike Iranian nuclear facilities.
Giovanni Staunovo stated that fears of supply disruptions caused prices to rise today, given that Iranian oil exports exceed 1.5 million barrels per day.
