Oil Declines As US Inventories Increase
Wednesday 08, May 2024 08:13 | Economical Number of readings: 175 Baghdad / NINA / Oil prices fell in early Asian trading on Wednesday, at a time when sector data showed a rise in crude and fuel inventories in the United States, indicating a possible weakness in demand, and caution prevailed in supply expectations before a meeting of the OPEC + bloc next month.
Brent crude futures fell 30 cents, or 0.36 percent, to $82.86 per barrel by 0348 GMT, and US West Texas Intermediate crude futures fell 25 cents, or 0.32 percent, to $78.13 per barrel.
The two crude oil prices witnessed a limited decline in the last session due to indications of a decline in supply scarcity and weak global demand for oil after an International Energy Agency forecast report issued on Tuesday.
US crude inventories increased by 509,000 barrels in the week ending May 3, according to market sources citing American Petroleum Institute figures. She added that gasoline and distillate stocks also rose.
Official government data on crude and fuel inventories in the United States is scheduled to be released at 1430 GMT. Analysts polled by Reuters expected US crude inventories to decline by about 1.1 million barrels last week.
Cautious expectations about supply cuts from the Organization of the Petroleum Exporting Countries and its allies in the OPEC+ bloc before a policy meeting on June 1 also weighed on the markets.
Analysts from ING said, “Oil prices have been subjected to additional pressure due to the increasing commotion surrounding OPEC+ production policy, and expectations are that member states will extend the additional voluntary reduction in supplies beyond the second quarter of this year.”
Hopes of reaching a ceasefire in the Gaza Strip also put additional pressure on oil prices in the previous few sessions./End 9 https://ninanews.com/Website/News/Details?key=1125308
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