Oil prices up over strong US demand data, supply concerns

By Firdevs Yuksel

ANKARA - Oil prices continued their upward trend on Wednesday over robust demand indicators in the US, the world's biggest oil consumer, indicating some tightening in US markets as the summer vacation season approaches.

International benchmark Brent crude traded at $88.55 per barrel at 10.30 a.m. local time (0730 GMT), a 0.15% increase from the closing price of $88.42 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $83.46 per barrel at the same time, a 0.12% rise from the previous session that closed at $83.36 per barrel.

The American Petroleum Institute announced late Tuesday an estimated decrease of 3.23 million barrels in US crude oil inventories, against the market prediction of a build of 1.8 million barrels.

The data indicates some tightening in the US markets as the travel-heavy summer vacation season draws near.

If official data from the Energy Information Administration (EIA) later on Wednesday reveals a reduction in the amount of gasoline and oil stockpiles, prices are predicted to rise even further.

Meanwhile, the longstanding Israeli-Palestinian conflict showed no signs of abating and is continuing to raise geopolitical risks in the Middle East.

Israel is continuing its relentless onslaught for the 201st day despite a UN Security Council resolution demanding an immediate cease-fire in the besieged Gaza Strip.

Since last October, Israel’s offensive has killed over 34,183 people and injured 77,143 others amid a crippling blockade that has left most of the population on the verge of starvation.

Israeli airstrikes on several areas in the Gaza Strip are still in play, including the city of Rafah. This is where Israel insists on invading under the pretext of confronting the last strongholds of the Hamas movement, despite increasing international warnings of catastrophic consequences in an area that hosts approximately 1.4 million displaced people.