Oil prices fall due to unexpected growth in US inventories

UNITED STATES, WASHINGTON (EDUFINTECH) – Oil prices fell on Wednesday after data showed an unexpected increase in US inventories last week, heightening worries about weakening fuel demand due to a sharp rise in coronavirus cases.

Futures for Brent crude oil fell 0.56% to $ 68.96 per barrel by 8:30 GMT, WTI – by 0.54% to $ 66.84 per barrel.

The market “came under slight downward pressure during today’s morning trading after a bearish and rather unexpected API stocks report,” according to a note from analysts at ING Economics.

US crude and gasoline inventories rose last week, while distillate inventories fell, two market sources said, citing data from the American Petroleum Institute (API) on Tuesday.

At the same time, ten analysts interviewed by Reuters expected that oil reserves would fall by an average of about 4.5 million barrels.

Investors are now awaiting data from the US Energy Information Administration, which could confirm an increase in oil inventories after eight consecutive weeks of decline.

The OPEC + deal to increase oil production by 400,000 barrels per day every month from August to December led to a sharp drop in oil prices on Monday. The sell-off has intensified on concerns about demand amid rising delta-variant coronavirus cases in major markets such as the US, UK and Japan.

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