Oil prices rose on Wednesday after two days of losses as concerns about the security of supply from the Middle East offset a larger-than-expected build in U.S. crude inventories. Brent crude futures were up 0.8% at $90.12 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.8% to $85.92.
The deadlock in Gaza ceasefire talks renewed uncertainty about the security of oil supply from the Middle East, pushing prices higher. This offset the impact of a bigger-than-expected build in U.S. crude inventories.
Meanwhile, on Wall Street, the S&P 500 dropped 1% at the open after firm March consumer prices data dampened hopes of the Federal Reserve starting a monetary easing cycle in June. The Dow Jones Industrial Average fell 0.57% to 38,662.28 at the open.
In other news, SIP contributions hit an all-time high of Rs 19,271 crore in March, while U.S. Treasury yields spiked after higher-than-expected inflation data, with the 10-year yield hitting 4.5%, its highest since November last year.
The dollar also hit its highest against the yen since July 1990, following the latest U.S. inflation data. Foreign portfolio investors turned net buyers on Wednesday after two days of selling, while the Nifty Bank hit a fresh record high above 49,000 for the first time.
Overall, the markets are reacting to a mix of geopolitical tensions, inflation data, and record highs in various sectors. Investors are closely watching for further developments in these areas to guide their investment decisions.
