Crude oil prices were seen falling on Wednesday, with the West Texas Intermediate (WTI) crude declining for a second day after report showed that gasoline supplies climbed in the US, the world’s biggest oil consumer.
Futures for the US benchmark West Texas Intermediate (WTI) for September delivery was down by 60 cents to $101.79 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude for September settlement traded 6 cents higher at $107.39 a barrel on the ICE Futures Europe exchange based in London.
Crude Supplies
A crude inventories report from the American Petroleum Institute showed that crude oil inventories in the US, dropped by 600,000 barrels in the week ending July 18.
Meanwhile a separate report from the Energy Information Administration (EIA) due for release later in the day is expected to show a decline in crude supplies to 2.9 million barrels to 372.1 million. US gasoline inventories is forecasted to have fallen to 213.5 million barrels in the week ending July 18.
Geopolitical Tensions
The ongoing geopolitical tensions in Ukraine and Middle East continue to weigh on crude prices as international investigations over the Malaysian Airline flight MH17 which was shot down; began this week.
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The fatal incident has worsened the crises between the Western nations and Russia as the Russian President faces further global pressure after claims that the flight was downed by a missile system supplied by Russian military.
After already being sanctioned over the annexation of Crimea in March, the Russian President Vladimir Putin is expected to face a new round of sanctions from the US and EU, which could weigh on supply.
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