WTI Crude Futures Extend Decline Amid Anticipation of Rising US Crude Inventories

WTI crude futures fell to $84.5 per barrel on Wednesday, continuing their downward trend for the third consecutive session. This decline comes in anticipation of a forthcoming government report that is expected to reveal an increase in US crude inventories.

Analysts predict that the upcoming report will show a rise in crude oil stocks by approximately 1.6 million barrels from the previous week. Supporting this view, recent data from the API's Weekly Statistical Bulletin indicated a significant increase in US crude oil stocks, which surged by 4.090 million barrels, following a 3.034 million barrel increase the week prior.

In the geopolitical arena, tensions remain high as the market closely monitors Israel's potential response to Iran's recent attack. Over the weekend, Iran executed a drone and missile strike, prompting Israel to promise retaliation. Meanwhile, the United States has urged caution in the escalating situation, adding another layer of complexity to global oil market dynamics.