Oil Prices Steady Amid Rising US Stockpiles, Middle East Tensions and Macroeconomic Concerns

U.S. crude inventories exceed analyst expectations while fears of Middle East conflict escalation and potential recession in the Euro zone dampen oil demand outlook.

U.S. crude inventories have risen by 1.4 million barrels in the last week, exceeding analysts' predictions of a 240,000-barrel increase. This indicates weaker oil demand and drawdown. Refinery crude runs and utilisation rates have concurrently dropped, also signaling subdued demand.
The escalating tensions in the Middle East, particularly the conflict between Israel and Hamas, are being closely monitored by investors due to fears that any intensification could disrupt oil markets and supplies.
Macroeconomic concerns are capping oil price gains. Negative business activity data from the euro zone and the potential for it to slip into a recession could dampen the outlook for oil demand. Recent business activity indicators from Germany and Britain also raise recession risks in these countries.
Gasoline inventories in the U.S. showed an unexpected build-up in the last week, leading to falling refining margins and adjustments in market expectations.
Oil prices remain nearly steady as these factors offset - Middle East tensions and potential supply disruptions are countering the dampening effect of rising U.S. inventories and macroeconomic factors on the outlook for oil demand.