Oil Prices Drop Amid Supply Concerns, Inventory Increase

Oil prices have experienced significant volatility recently, with WTI crude down 3.26% and Brent crude down 2.97% as of the latest reports. This decline follows a bearish inventory report from the American Petroleum Institute, which indicated a substantial increase in US crude oil inventories, surpassing market expectations. As the market anticipates reports from OPEC and the International Energy Agency, geopolitical tensions and supply constraints, particularly from Russia and Iran, continue to affect prices. Despite a slight rebound in prices earlier in the week, concerns about US tariffs and economic factors, including the upcoming US CPI data and Federal Reserve chair Jerome Powell's testimony, may further influence market dynamics. Analysts are closely monitoring these developments, with a focus on how they could impact supply and demand forecasts. The energy calendar is packed with key reports that could lead to additional fluctuations in oil prices.