Oil prices were mixed early on Wednesday after a strong decline the day before, as investors await US oil stockpile data and assess the supply and demand balance in the global market.
According to the latest data by the American Petroleum Institute, US stockpiles increased by 1.1 million barrels over the week, well above the forecasted decrease by 2.06 million barrels.
Today, market players are awaiting the release of inventories data by the US Energy Information Administration. Analysts polled by the S&P Global Commodity Insights expect crude inventories to decrease by 1.85 million barrels. Gasoline and distillate stocks are expected to decline by 350,000 and 700,000 barrels respectively.
Yesterday, European Commission President Ursula von der Leyen announced new sanctions against Russia.
The proposed fifth sanctions package involves banning Russian coal imports worth €4 billion a year, a ban on all transactions with 4 leading Russian banks, blocking Russian ships from entering European ports, and stopping exports of semiconductors and transportation equipment into Russia.
As a result, Brent futures for June delivery gained 0.21% and reached $106.86 per barrel. Earlier, Brent futures fell by 0.8% to $106.64 per barrel.
At the time of writing, WTI May futures decreased by 0.07% to $101.89 per barrel. WTI futures lost $1.32 the day before, reaching $101.96 per barrel.
On Wednesday, the US dollar has advanced against other major currencies such as EUR and JPY, which is an important bearish factor for oil. The US dollar index rose by 0.1% to 99.58 points.
Usually, a stronger US dollar makes commodities such as oil more expensive for holders of other currencies.