Oil prices fell for the fifth time in six sessions on Wednesday, as traders reacted to hopes for progress in peace talks between Russia and Ukraine and a sudden increase in US crude stocks.
The oil market has been witnessing sharp fluctuations for regarding two weeks, and both benchmarks have traded over the past 30 days, in a range that is wider than at any time since mid-2020.
The situation was not different today, as the global benchmark Brent crude was traded in the range of $ 6, between $ 97.55 and $103.70, before recording at the settlement of $ 98.02, down by $1.89 or 1.9 percent.
US West Texas Intermediate crude contracts ended the session as low as $1.40, or 1.5 percent, at $95.04 a barrel.
A frantic buying spree, last week, pushed Brent to briefly exceed $139 a barrel, amid fears of an interruption in Russian supplies. Brent is now more than $40 below that level, and analysts warn that this reflects great optimism that the war will end soon.
The United States and other countries have imposed tough sanctions on Russia since it invaded Ukraine more than two weeks ago. This hindered Russia’s oil trade of more than 4 to 5 million barrels of crude per day.
And Brent recorded gains of 28 percent in six days, and then fell 24 percent over the previous six sessions, including today’s session. Prices recorded their highest level in 14 years on the seventh of March, before retreating.
And data from the US Energy Information Administration showed today that crude stocks in the United States recorded an increase of 4.3 million barrels last week, while it was expected to decrease.
Read also: The US Central Bank raises interest rates and expects inflation to decline
Today, the US Federal Reserve raised interest rates for the first time in three years, without having a significant impact on the course of the oil market.
