US crude oil inventories rose significantly this week, far exceeding expectations; Which raised investors' concerns about global demand; Data from the US Energy Information Administration showed an increase in inventories amounting to 2.735 million barrels, while analysts had expected an increase of only 1.600 million barrels.

This sudden rise led to a decline in oil prices. Brent crude fell by 1.15% to $89 per barrel, while West Texas Intermediate crude fell by 1.1% to $84.4 per barrel.

This increase in inventories comes at a time when oil prices are already facing pressure due to concerns about global demand.

Oil prices fell for the third consecutive session last Wednesday, driven by fears of a slowdown in the global economy, especially in China, the second largest oil consumer in the world.

Weak economic data from China showed that domestic demand is still weak. Which raised investors' concerns about the growth in global demand for oil.

In addition, bleak expectations regarding interest rate cuts by the US Federal Reserve dampened investor sentiment in the oil market.

Senior US Federal Reserve officials, including Federal Reserve Chairman Jerome Powell, recently stated that they do not expect to cut interest rates anytime soon; This disappointed investors who were looking forward to lower borrowing costs.