Oil Prices Rise Amid Middle East Tensions

Oil prices experienced a slight increase as traders reacted to falling U.S. crude inventories and ongoing tensions in the Middle East. West Texas Intermediate crude settled at approximately $70.67 per barrel, while Brent crude stood around $74.45. The U.S. Energy Information Administration reported a decline of 2.2 million barrels in crude inventories, contrasting with analysts' expectations for an increase. However, OPEC and the International Energy Agency have cut their demand forecasts for the coming years, contributing to market volatility. Concerns persist regarding potential retaliatory actions by Israel against Iran, which could further influence oil supply dynamics. Overall, market sentiment remains cautious amid these geopolitical tensions and mixed economic signals from China.