(New York) Oil prices fell very slightly on Wednesday after a stronger-than-expected increase in crude stocks in the United States last week.
The price of a barrel of Brent from the North Sea, for delivery in April, ended almost stable (-0.03%) at $83.68.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, fell 0.41% to $78.54.
During the week ended February 23, weekly crude inventories in the United States increased by 4.2 million barrels while analysts expected an increase of 3.71 million barrels, according to the median of a compiled consensus by the Bloomberg agency.
Gasoline reserves, however, fell by 2.8 million barrels compared to last week, exactly what analysts had predicted.
This increase in stocks tended to weigh on prices.
Furthermore, investors still had their eyes on the geopolitical situation in the Middle East.
“Uncertainties persist over a possible ceasefire in Gaza, while Houthi rebels in Yemen continue to disrupt shipping on the Red Sea, leading to rising freight costs and delays in shipments,” summarizes John Plassard, analyst at Mirabaud.
Between these talks for a ceasefire and the swelling of crude stocks “it is difficult to maintain the upward trend,” also commented Ryan McKay of TD Commodities.
“However, even if a truce occurs for the month of Ramadan” which begins on the evening of March 10 “mitigating risks to supply, it is unlikely that this would eliminate the risk premium on prices before it there is a more permanent resolution to the conflict,” added the analyst.
At the same time, the market expects members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to announce at the beginning of March the renewal of their voluntary production cuts for a new quarter.
But “OPEC’s plausible decision “not to touch production cuts” should prevent prices from plunging, “rather than pushing them towards $90 per barrel and beyond,” said Tamas Varga, analyst at PVM Energy.