Oil prices rose slightly on the US data on stocks

Oil prices are rising slightly on Wednesday after the release of data from the American Petroleum Institute (API), which indicate a more significant than expected reduction in reserves in the United States. The current quotation of Brent crude oil is $73.20 per barrel. 

According to information from API, stocks decreased by 2.41 million barrels during the week. Experts on average expected a reduction of 1.47 million barrels. Official data on oil reserves for the past week will be published by the US Department of Energy later on Wednesday. 

Analysts note that the oil market ends the second quarter of 2023 with negative dynamics due to a slower-than-expected recovery of the Chinese economy after the lifting of covid restrictions. The market is also under pressure from fears of a recession in the US and Europe in light of the tightening of monetary policy by the Fed and the European Central Bank.

However, statistics released on Tuesday show that the US economy continues to demonstrate stability, despite the strict policy of the Federal Reserve. The country's consumer confidence index in June reached its highest level since January 2022, and sales of new apartment buildings in May were the highest since February last year.

Experts believe that strong economic data increases the likelihood of a further rate hike by the US Federal Reserve. «This is the moment when good news becomes bad news for the market,» economists say.