Wednesday’s oil prices edged higher after unexpected U.S. crude stock reductions suggested strong demand, juxtaposed with ongoing Middle East tensions. Contrary to forecasts of an 800,000 barrel increase, API data revealed a decrease of over 3 million barrels for the week ending April 19.

A dip in U.S. business activity to a four-month low implies potential rate cuts, potentially spurring oil demand from the top global consumer. While the Middle East conflicts continue, current impacts on oil supplies are minimal, with new sanctions against Iran on the horizon but not immediately affecting supply.