U.S. crude oil pulled back slightly to $83 a barrel on Wednesday, after rallying nearly 2% in the prior session.
Traders’ focus has shifted back to supply and demand fundamentals as the threat of war between Israel and Iran has faded.
The market looks somewhat bearish at the moment with global oil inventories rising as crude that was stuck on the water due in part to Red Sea disruptions is now unloading, according to a Goldman Sachs note from Tuesday. This is reducing tightness in the market, according to the bank.
Goldman also sees the geopolitical risk premium factored into prices easing by another $5 to $10 a barrel in the coming months.
Here are the latest energy prices:
The West Texas Intermediate June contract: $82.60 a barrel, down 78 cents, or 0.94%. Year to date, U.S. crude oil is up more than 15%.
Brent
The June contract: $87.77 a barrel, down 65 cents, or 0.74%. Year to date, the global benchmark is up about 14%.
RBOB Gasoline May contract: $2.71 a gallon, down 0.24%. Year to date, gasoline futures are up more than 29%.
Natural Gas May contract: $1.70 per thousand cubic feet, down 5.91%. Year to date, natural gas is down about 32%.
U.S. commercial crude stockpiles, which exclude the strategic petroleum reserve, fell by 6.4 million barrels last week, the largest drawdown since mid January, according to data from the U.S. Energy Information Administration.
The U.S. Senate passed a foreign aid package that would expand sanctions against Iranian oil and target ports, vessels and refineries that knowingly accept the Islamic Republic’s crude exports.
