Crude oil prices were mixed Wednesday as Turkey launched an offensive in Syria that could disrupt the region’s crude production, and on hopes of progress in the U.S.-China trade war, but a build in U.S. crude oil inventories tempered gains.
Brent crude was up 22 cents, at $58.44 a barrel, and U.S. West Texas Intermediate crude finished Wednesday’s trading session at $52.59, down 4 cents, Kallanish Energy reports.
Turkey launched a military operation against Kurdish fighters in northeast Syria Wednesday, president Tayyip Erdogan said, adding the offensive was aimed to eliminate a “terror corridor” along the Turkish border.
Analysts say the attacks could impact the economy of the oil-producing Kurdistan region in Iraq and boost energy prices.
Prices pared gains after U.S. President Trump said the assault on Syria was “a bad idea” not backed by his administration.
Growing U.S. crude stocks also limited oil prices. Crude inventories grew more than expected last week, rising by 2.93 million barrels (Mmbbl), compared with analysts’ expectations for an increase of 1.4 Mmbbl, the Energy Information Administration said.
U.S. crude oil production rose to a new record of 12.6 million barrels per day (Mmbpd) for the week ended Oct. 4.
Negotiators from the U.S. and China meet in Washington today in the latest effort to reach a deal aimed at ending a long-running trade dispute that has slowed global growth.
China is still open to agreeing a partial trade deal, Bloomberg reported Wednesday, citing an official with direct knowledge of the talks.
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