Oil prices fluctuated on Wednesday as investors express concerns over an impending economic slowdown. West Texas Intermediate closed 1.8% higher on Wednesday at a price of almost $88 per barrel while futures appear to be headed for a loss as the possibility of a nuclear deal and more oil from Iran contributed to the bearish market sentiment.
Bullish signs from the Energy Information Administration coincided with investors’ anxiety as its latest report announced that exports rose to a record high following a surge in demand to its highest level this year. U.S. crude stockpiles have been reduced by 7.06 million barrels per year.
As of present, crude is trading at its lowest level in six months since losing the gains that were made following the Russian invasion of Ukraine. Still, OPEC’s new Secretary-General Haitham Al Ghais believes that the value of crude will increase during the later stages of the year as stockpiles continue to be reduced and a gradual climb in demand.
U.S. crude exports increase to five million barrels per day last week, its highest level in almost a month. The four-week average of gasoline, a catalyst for crude, rose to 9.1 million barrels a day.