By Sibel Morrow
Oil prices declined on Friday over concerns of weak demand in the US and a stronger US dollar, although overnight Israeli airstrikes on the Gaza Strip mitigated price falls.
The international benchmark crude Brent traded at $81.50 per barrel at 9.54 a.m. local time (0654 GMT), a 0.16% decline from the closing price of $81.63 a barrel in the previous trading session on Thursday.
The American benchmark, West Texas Intermediate (WTI), traded at the same time at $76.19 per barrel, down 0.04% from Thursday’s close of $76.22 per barrel.
The US Energy Information Administration’s (EIA) recent report spurred the price downturn, which disclosed a substantial rise in the country’s commercial crude oil inventories, signaling a demand decline in the world's largest crude oil consumer.
According to the data released on Wednesday, inventories surged by approximately 5.5 million barrels, reaching a total of 427.4 million barrels, exceeding market expectations of a rise of about 674,000 barrels.
Furthermore, the rise of the US dollar's value also supported declines in dollar-indexed oil prices by raising the cost of crude for holders of other currencies, which put downward pressure on prices.
Meanwhile, supply risks in the Middle East are intensifying and bolstering price upticks with Israel’s renewed attacks on Gaza.
On Friday, Israel stepped up its military campaign with new airstrikes targeting the densely populated border town of Rafah in southern Gaza, home to over a million displaced Palestinians. These developments come amid warnings from the United States, a major ally, of an impending "disaster."