Oil prices up after unexpected drop in US stocks

ANKARA

Oil prices increased on Wednesday, spurred by data showing a decline in US oil stocks.

International benchmark Brent crude was trading at $90.94 per barrel at 0615 GMT with a 0.18% gain after closing the previous session at $90.78 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $89.51 per barrel at the same time for a 0.17% rise after it ended the previous session at $89.36 a barrel.

Crude inventories fell by 2 million barrels against expectations of a 400,000-barrel increase, according to American Petroleum Institute figures released late Tuesday.

The drop in US stocks offset concerns of a possible supply rise from Iran entering global markets and building a supply surplus, as lifting sanctions will allow Iran to pump more oil into the market.

Experts will focus on the US Energy Information Administration for its weekly oil data to be released later in the day.

Meanwhile, Jen Psaki, the White House spokesperson, said during a press briefing on Tuesday that "the President is going to continue to use every tool at his disposal to reduce prices," to combat high oil prices.​​​​​​​

Referring to President Biden's policy on current oil prices, Psaki summarized the action plan as strategizing with oil consuming and producing countries, releasing oil from the strategic petroleum reserve and ensuring that consumers are protected in the volatile market.

The US is holding talks with both producing and consuming countries, Psaki said. "With oil-producing countries, we’re talking about proposed production increases. With oil-consuming countries, we’re talking about releases from strategic reserves," she added.