Oil prices fall to near three-week low as U.S. crude inventories rise

① Oil prices fell in Asian trading on Monday, weighed down by a renewed focus on fundamentals as both Israel and Iran downplayed the risk of escalating hostilities in the Middle East after Israel launched an apparent small-scale strike on Iran. ② Brent crude futures fell 0.9% to $85.74 a barrel. The May contract of U.S. West Texas Intermediate (WTI) crude oil, which expires on Monday, fell 0.26 to $82.92 a barrel. The more active June contract fell 1.25% to $81.42 a barrel, the lowest since March 28. ③ Independent market analyst Tina Teng said, “Economic concerns have once again become a bearish factor in the crude oil market, as oil prices are under pressure due to a large increase in US inventories and a stronger dollar due to the hawkish Fed.” ④ Chicago Fed President Goolsbee said on Friday that progress in reducing inflation this year has “stagnated,” becoming the latest policymaker to change his mind about cutting interest rates after previously focusing on the need for them soon. ⑤ The U.S. Energy Information Administration (EIA) said last Wednesday that crude oil inventories increased by 2.7 million barrels to 460 million barrels in the week ending April 12, while analysts surveyed expected an increase of 1.4 million barrels. ⑥ The U.S. House of Representatives passed a $95 billion bill on Saturday with broad bipartisan support, despite fierce opposition from Republican hardliners, to provide security assistance to Ukraine and Israel. ⑦ Data shows that Iran is the third largest oil producer in the Organization of Petroleum Exporting Countries (OPEC). Despite a series of existing US sanctions, Iran’s oil exports have increased due to demand from Asian powers and networks outside the US financial system. Analysts at ANZ Bank said in a report that the turmoil in the Middle East will continue to make the oil market “uneasy”.