Oil came off its session lows on Wednesday as traders weighed factors impacting prices this week including the latest US inventory data, China’s stimulus, and the ongoing Middle East conflict.
West Texas Intermediate (CL=F) fell as much as 2% before paring losses to trade near $73 per barrel while Brent (BZ=F), the international benchmark price, also slipped less than 1% to trade above $76.
The latest US government data showed crude inventory rose by 5.81 million barrels last week, less than a gain of 11 million as projected by the American Petroleum Group, an industry organization.
Wednesday’s dip follows a slide of more than 4% in the prior session after China’s stimulus plans appeared to disappoint investors, and traders assessed whether the conflict between Tel Aviv and Tehran would ultimately impact Iran’s crude production.
“If Israel were to strike Iran targeting oil facilities crude is likely underpriced, however, a strategic strike against military operations or other areas with minimal damage, and crude will likely migrate towards the $70/bbl area,” Dennis Kissler, BOK Financial’s senior vice president of trading wrote in a client note on Wednesday.
