"Oil Prices Volatile Amidst Demand Concerns and Middle East Conflict"

Oil prices remain under pressure despite a decline in inventories reported by the American Petroleum Institute, as economic concerns and hopes for a ceasefire in the Middle East offset the positive news. Disappointing business activity data in the eurozone, along with recession fears, contributed to the downward pressure on oil prices. Speculators have increased their bullish bets on oil due to the war premium added to prices after the Israel-Hamas conflict. Analysts suggest that the war premium has not dissipated enough to declare a meaningful reduction in geopolitical risk.