

Market Analysis
Oil prices held steady on Wednesday amid ongoing concerns over escalating conflicts in Europe and the Middle East, balanced against demand worries triggered by an unexpected increase in U.S. crude inventories.
Brent crude futures saw a marginal increase of 2 cents to reach $85.35 per barrel by 0350 GMT, while U.S. West Texas Intermediate crude dipped by 6 cents to $81.51 per barrel.
The previous session saw both benchmarks surging over $1 following reports of a Ukrainian drone strike causing a fire at a major Russian oil terminal, as confirmed by Russian officials and Ukrainian intelligence sources.
In the Middle East, Israeli Foreign Minister Israel Katz warned of a potential "all out war" with Lebanon's Hezbollah, even as the U.S. sought to prevent a broader conflict involving Israel and Iran-backed Hezbollah.
The prospect of a heightened conflict in the region raised concerns about potential disruptions in crude supply from major producers.
Recent data from China indicated that while May industrial output fell short of expectations, retail sales, a key indicator of consumer spending, showed its fastest growth since February.
According to analysts at ANZ Research, a broader positive sentiment across global markets has bolstered crude oil prices. Mixed economic indicators from the U.S. for May have increased speculation that the Federal Reserve might consider earlier rate cuts, buoyed by strong industrial production and modest retail sales growth.
Federal Reserve officials are monitoring inflation trends and labor market conditions cautiously, with expectations leaning towards potential interest rate cuts by year-end to stimulate economic activity and bolster oil demand.
However, the rise in U.S. crude inventories by 2.264 million barrels for the week ending June 14, reported by the American Petroleum Institute, tempered further gains in oil prices. Gasoline inventories declined by 1.077 million barrels, while distillates saw a modest increase of 538,000 barrels, according to sources familiar with the data.
Official U.S. stocks data from the Energy Information Administration is scheduled for release at 1500 GMT.
Paraphrasing text from "Reuters" all rights reserved by the original author.