Oil Steady as Middle East Worries Offset US Crude Stock Buildup

A pump jack lifts oil out of a well during a sandstorm in Midland, Texas, US, April 13, 2018. Picture taken April 13, 2018. (Reuters)
A pump jack lifts oil out of a well during a sandstorm in Midland, Texas, US, April 13, 2018. Picture taken April 13, 2018. (Reuters)
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Oil Steady as Middle East Worries Offset US Crude Stock Buildup

A pump jack lifts oil out of a well during a sandstorm in Midland, Texas, US, April 13, 2018. Picture taken April 13, 2018. (Reuters)
A pump jack lifts oil out of a well during a sandstorm in Midland, Texas, US, April 13, 2018. Picture taken April 13, 2018. (Reuters)

Oil prices were little changed on Wednesday after two straight days of losses, as the deadlock in Gaza ceasefire talks renewed uncertainty about the security of supplies from the Middle East, offsetting a bigger-than-expected build in US crude inventories.

Brent crude futures were up marginally at $89.49 per barrel at 0330 GMT, while US West Texas Intermediate (WTI) crude futures rose 8 cents to $85.31.

Prices for both benchmarks remain down around 1.8% on the end of last week despite geopolitical tensions in the Middle East triggered by the prospect of Israel's war in Gaza lasting longer, and drawing in more countries.

"Some of the heat has come out of rally in crude oil in the early part of this week on hopes of a ceasefire in Gaza and higher US inventories," said Tony Sycamore, a market analyst at IG in Singapore.

Hamas said on Tuesday that an Israeli proposal on a ceasefire in their war in Gaza did not meet the demands of Palestinian militant factions, but it would study the offer further and deliver its response to mediators.

If the conflict continues, it risks the involvement of other countries in the region, particularly Hamas backer Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).

Meanwhile, US crude stocks climbed last week by 3.03 million barrels, according to market sources citing American Petroleum Institute figures. Analysts had estimated that stocks would rise by about 2.4 million barrels.

Official US government inventory data is due at 1430 GMT.

However, all the risks remain to the upside, IG's Sycamore said.

"Anything from a cooler-than-expected US CPI tonight to another Ukrainian drone attack on Russian oil infrastructure to a response from Iran after Israel killed two of its generals in Syria last week is more than capable of re-igniting the uptrend," he added.

Separately, the government raised its forecast for US crude oil output, expecting an increase of 280,000 bpd to 13.21 million bpd in 2024, up 20,000 bpd from an earlier forecast from the US Energy Information Administration (EIA).

However, EIA said it expects Brent crude prices to average $88.55 a barrel in 2024, up from a previous forecast of $87 a barrel.

On Tuesday, both Brent and WTI fell more than 1%, as Israel-Hamas ceasefire discussions in Cairo continued.

Türkiye said it would restrict exports of various products, including jet fuel, to Israel until there is a ceasefire. Israel said it would respond with its own curbs.



Mawani Adds FRS1 Shipping Service to Jeddah Islamic Port, Boosts Global Connectivity

Mawani Adds FRS1 Shipping Service to Jeddah Islamic Port, Boosts Global Connectivity
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Mawani Adds FRS1 Shipping Service to Jeddah Islamic Port, Boosts Global Connectivity

Mawani Adds FRS1 Shipping Service to Jeddah Islamic Port, Boosts Global Connectivity

The Saudi Ports Authority (Mawani) announced the addition of CStar Line's new Far East-Red Sea service (FRS1) to Jeddah Islamic Port to enhance the port's competitiveness, expand its maritime network, boost operational efficiency, and solidify its position as a strategic logistics hub on the Red Sea.

The FRS1 service connects Jeddah Islamic Port to five regional and international ports: Ningbo, Shanghai, and Nansha in China; Aqaba in Jordan; and Ain Sokhna in Egypt.

According to SPA, it has a capacity of up to 2,000 TEUs.

This move is part of Mawani's efforts to improve the Kingdom's ranking in global performance indicators and support national export activity.

It aligns with the National Transport and Logistics Strategy, which aims to establish Saudi Arabia as a global logistics center and a hub connecting three continents.