Profit Realization in Oil Prices and Supply Concerns

Latest Developments in the Oil Market

Oil prices fell slightly as investors took profit realizations. The pullback was driven by a surprise drop in weekly crude inventories in the United States in the previous session and concerns over energy supply amid the Ukraine-Russia war.

Market Price Changes

Brent futures fell 0.26% to $69.13 a barrel, while US crude (WTI) declined 0.31% to $64.79 a barrel.

Analyst Comments

IG market analyst Tony Sycamore said, "After testing the bottom of the recent range earlier this week, crude oil has rallied back towards its upper boundary. There may be some profit-taking at the moment," he added.

Stockpile Data and Supply Concerns

Prices were supported by US crude inventories falling by 607,000 barrels in the week ended September 19, well above forecasts. This contradicted analysts' expectations for a 235,000 barrel increase and was below the 3.8 million barrel decline reported by the American Petroleum Institute, according to the Energy Information Administration.

Conclusion and Prospects

Oil prices have also been driven by supply concerns over the Russia-Ukraine war.