Oil prices experienced a technical rebound on Wednesday, mainly influenced by news of Iraq resuming crude oil exports, which eased market concerns over short-term supply tightness.
Brent crude fell to $101.91 per barrel but remained in the range above $100, indicating the market is still in a high oil price cycle. WTI crude dropped to $93.46 per barrel, a decline of nearly 3%.
Changes in supply have become a key driving factor. Iraq's Kirkuk oil fields resumed exports through Turkey's Ceyhan port, with an initial volume of about 100,000 barrels per day, providing marginal supply to the market.
However, geopolitical risks remain the dominant factor. The ongoing tension related to Iran poses a potential threat to the security of transportation through the Strait of Hormuz, restricting global crude oil exports.
Inventory data is also putting pressure on oil prices. API data showed an unexpected increase of 6.56 million barrels in U.S. crude oil inventories, far exceeding the market expectation of about 380,000 barrels, reflecting signs of a potential slowdown in demand.
Overall, the oil market is in a phase of "supply improvement versus geopolitical risk hedging," with short-term volatility expected to remain high.
