WTI crude futures pared gains to trade below $72 per barrel, after US government data showed an unexpected increase in crude stocks. The EIA report showed crude oil inventories in the US rose by 1.338 million barrels last week, defying expectations of a 675 thousand-barrel decrease. In contrast, industry data on Tuesday pointed to a significant drop of 5.2 million barrels. Meanwhile, investors continue to monitor geopolitical tensions in the Middle East and a halt in oil production in Libya. Libya’s Sharara oilfield has stopped production due to political protests, resulting in the elimination of roughly 300,000 barrels per day from the market. At the same time, Houthi attacks on vessels passing the Red Sea due to a war in Gaza increased fears of a broader regional conflict.
