20.08.202501:17:52UTC+00Brent Rises on Falling US Stockpiles

Brent crude oil futures experienced an uptick, surpassing $66 per barrel on Wednesday, recovering from a loss exceeding 1% in the previous session. This increase followed industry reports indicating a more substantial reduction in U.S. crude inventories than anticipated. According to the American Petroleum Institute (API), there was a 2.4 million-barrel decrease last week, significantly greater than the projected 1.2 million-barrel decline, pointing to robust demand. Nonetheless, geopolitical factors limited these gains. Markets remain attentive to potential peace negotiations between Russia and Ukraine, which could lead to relaxed sanctions on Russian crude, thereby enhancing global supply. Concurrently, Chinese refiners procured 15 shipments of Russian oil for delivery in October and November, compensating for a decrease in Indian demand and underscoring the tenacity of Russia’s exports despite existing sanctions. The possibility of a Russia-Ukraine accord, more lenient application of secondary sanctions, and increased OPEC+ production have collectively contributed to the recent market downturn, driving oil prices to their lowest in nearly three months and resulting in a decline of over 10% this month.