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The Drop in Oil Prices: Causes and Implications

On Friday, the price of Western Texas Intermediate (WTI), the benchmark for US crude oil, hovers below $79.00, showing a modest rebound from a seven-week low.

However, any potential gains may be constrained by increasing crude oil stockpiles in the United States and diminishing expectations for interest rate cuts by the US Federal Reserve (Fed). The Fed opted to keep interest rates steady on Wednesday, citing persistent inflation.

On the other hand, Last Wednesday, the US Energy Information Administration (EIA) announced that crude oil stockpiles in the US for the week ending April 26 rose by 7.256 million barrels, contrasting with the market's expectation of a decrease by 2.3 million barrels.

Moreover, the easing of tensions in the Middle East and the potential ceasefire between Israel and Hamas in Gaza have led to a narrowing of fluctuations in crude oil prices. 


Dr. Kamaran Qader Yaqub,
Financial consultant at Investment Spot company. 

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