The price of oil rose slightly after a three-day drop, which was caused by concerns about Chinese demand (the world's largest importer of oil) and a reduced risk of wider conflict in the Middle East.
Meanwhile, data from the American Petroleum Institute showed that crude oil inventories in the US rose by 347,000 barrels last week, while analysts predicted a 2.9 million barrel dip. The US is the world's biggest producer and consumer of oil, and growing inventories point to oversupply that could pressure prices. Gasoline inventories fell by 1.043 million barrels. Analysts had predicted a 400,000-barrel draw. Distillate inventories saw a decrease this week of 2.247 million barrels. Analysts had forecast a 200,000 barrel build. Cushing inventories saw a draw of 648,000 barrels, according to API data. Later today (at 14:30 GMT), official data from the Energy Information Administration will be published. Consensus estimates suggest that these data will indicate a decrease in oil reserves by 2.8 million barrels.
As for the situation in the Middle East, U.S. Secretary of State Antony Blinken wrapped up a trip to the Middle East intended to help broker a cease-fire agreement in Gaza. Experts said hopes for a cease-fire between Israel and Hamas had put pressure on oil, along with lingering concerns about demand. "Overall, the margins of refineries around the world were under pressure for most of August, which suggests that these demand problems are not isolated to just China," ING commodities strategists said.