Firdevs Yüksel
24 July 2024•Update: 24 July 2024
ISTANBUL
Oil prices increased on Wednesday over strong demand expectations following data indicating a decrease in crude inventories in the US, the world's biggest oil consumer.
International benchmark Brent crude traded at $81.31 per barrel at 10.13 a.m. local time (0713 GMT), an increase of 0.37% from the closing price of $81.01 per barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $77.26 per barrel at the same time, a 0.39% rise from the previous session that closed at $76.96 per barrel.
Data released by the American Petroleum Institute (API) late Tuesday showed a decrease of 3.9 million barrels in US crude oil inventories, against market predictions of a 2.47 million barrel draw.
Official figures from the Energy Information Administration (EIA) will be released later in the day, and if a decrease in crude oil is confirmed, prices are expected to climb further.
Supply concerns triggered by wildfires in Alberta, Canada, also supported price increases.
Wildfires are threatening more than 10% of the region's oil production, according to Daniel Hynes, a commodity strategist at the Australia and New Zealand Banking Group.
"Suncor Energy and Altair Energy have already been forced to curtail output as the wildfires overran the facilities," Hynes said in an e-mailed note.
However, slower-than-expected economic growth in China, the world's largest crude oil importer, continues to weigh oil prices down after the figures sparked concern last week over the country's crude demand.
Cease-fire efforts in the Middle East, home to a vast majority of global oil reserves, also put downward pressure on oil prices by relieving market players' supply concerns.
