Oil prices have declined on the global market following an unexpected increase in U.S. crude oil stockpiles. This rise in reserves has raised concerns about reduced demand, contributing to the downward trend in oil prices.
On Thursday, Brent crude, the international oil benchmark, dropped slightly by 0.02%, trading at $75.79 per barrel. Meanwhile, the U.S. benchmark, West Texas Intermediate (WTI), also experienced a minor decline of 0.06%, settling at $72.11 per barrel.
The American Petroleum Institute (API) reported that U.S. commercial crude oil inventories rose by 3.3 million barrels last week, significantly surpassing market predictions of a 2.2 million barrel increase. This higher-than-expected surplus indicates that demand for oil in the U.S. may be weaker than anticipated, further pressuring prices downward.
The U.S. Energy Information Administration (EIA) is expected to release official inventory data later in the day, which could provide further clarity on the situation.
In addition to inventory concerns, ongoing discussions about a potential peace agreement between Russia and Ukraine are also influencing oil prices. If a peace deal is reached, it could ease worries about oil supply disruptions, leading to further declines in prices.
U.S. President Donald Trump emphasized the importance of ending the Russia-Ukraine conflict during a summit in Miami, organized by the Future Investment Initiative (FII) Institute. He expressed optimism that negotiations between Russian and U.S. delegations in Riyadh, Saudi Arabia, could soon lead to a ceasefire and restore stability in Europe and the Middle East.
Russian President Vladimir Putin also commented on the peace talks, describing them as “positive” and conducted “in good faith.” He confirmed that both countries had agreed to resume normal diplomatic operations, a step that could indicate progress toward de-escalation.
However, despite these diplomatic efforts, geopolitical tensions remain high. Reports suggest that Ukraine recently targeted an oil pumping station operated by the Caspian Pipeline Consortium (CPC), a key transporter of Kazakh oil. The attack reportedly reduced the station’s capacity by 30% to 40%, and repairs are expected to take a significant amount of time. This incident has intensified concerns about oil supply disruptions, limiting the overall decline in prices.
As the global oil market continues to fluctuate, investors and analysts are closely monitoring these developments to determine their long-term impact on energy prices and global economic stability.
