Image Source: Unsplash

• WTI price edges higher to around $62.95 in Wednesday’s early Asian session. 
• Oil inventories rose by 2.499 million barrels in the week ended May 16, according to the API.
• A US credit rating cut by Moody’s might cap the WTI’s upside.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.95 during the Asian trading hours on Wednesday. The WTI price surges after CNN reported that US intelligence suggests Israel is making preparations to possibly strike Iranian nuclear facilities.

The United States (US) has obtained new intelligence suggesting that Israel is making preparations to strike Iranian nuclear facilities, even as US President Donald Trump has been pursuing a diplomatic deal with Tehran, multiple US officials familiar with the latest intelligence told CNN. It isn’t clear that Israeli leaders have made a final decision to carry out the strikes, CNN said, citing unnamed officials. Whether and how Israel attacks will most likely be determined by its assessment of the US negotiations with Tehran over its nuclear program. 

The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending May 16 climbed by 2.499 million barrels, compared to a rise of 4.287 million barrels in the previous week. The market consensus estimated that stocks would drop by 1.85 million barrels. So far this year, crude oil inventories are up more than 25 million barrels, according to Oilprice calculations of API data.

Moody’s lowered the US rating from 'Aaa' to ‘Aa1,’ citing that successive US administrations had failed to reverse ballooning deficits and interest costs. This raised questions about the economic health of the world's largest oil-consuming nation, which might cap the upside for the black gold. 

More By This Author:

USD/CAD Softens To Near 1.3900 On Caution Over US Economy
USD/CHF Remains On The Defensive Below 0.8350 On Weaker US Dollar
Gold Price Forecast: XAU/USD Holds Below $3,250 On Modest US Dollar Strength