Efforts to recover oil

Oil prices rose on a rise in U.S. inventories after falling to a seven-week low. Oil pared some of its losses as a significant increase in U.S. crude stockpiles raised concerns about weakening demand. Brent for July delivery traded below $84 a barrel after falling to its lowest level since mid-March the previous session, while U.S. crude approached $79. U.S. crude inventories rose by 7.3 million barrels last week to the highest level since early February, according to data from the Energy Information Administration (EIA). Oil, which rose to its highest level since October last month following Iran’s attack on Israel, has lost more than 5% this week. The decline came amid signs of easing tensions in the Middle East, including the possibility of a historic deal between Washington and Riyadh, and concerns that the Federal Reserve will keep interest rates high, further dampening demand in fuel markets as the summer season begins in the United States. “Demand concerns have come to the forefront for the oil market as EIA data showed a rise in crude inventories and Fed Chair Jerome Powell hinted that the start of the easing cycle will be delayed,” Charu Chanana, head of currency strategy at Saxo Capital Markets Pte, wrote in a note. “Some of the geopolitical premium for oil has also been erased.” On the supply side, OPEC has failed to meet its latest agreed production cuts. Iraq and the United Arab Emirates continue to produce several hundred thousand barrels a day above agreed limits, according to a Bloomberg survey.