The incoming UK administration is expected to move quickly to support new oil and gas activity in the North Sea, with reports indicating that Prime Minister Andy Burnham will signal his backing for fresh drilling within days of assuming office.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose by 3.296 million barrels in the week ending July 24. In the week prior, US crude oil inventories grew by 2.603 million barrels.
Renewed military exchanges between the United States and Iran have reignited the Middle East risk premium in oil markets, driving ICE Brent above US$76 per barrel this week after a gain of around US$4 per barrel.
Crude oil prices advanced in early Asian trading on Wednesday as escalating hostilities between the United States and Iran showed no indication of easing, pushing both major benchmarks to five-week highs.
OPEC+ is preparing to approve one more production increase for September and then put the monthly quota parade on hold through the end of the year.
The United Arab Emirates lifted its crude oil output to a record 4.1 million barrels per day (bpd) in June, according to estimates from the International Energy Agency, marking the highest level the country has ever produced.
