Oil prices fall amid expectation of US crude inventory data, economic indicators

INA-  source    


In early Thursday trading, oil prices experienced a downturn as markets awaited the latest data on US crude oil inventories. This anticipation comes at a time when strong indicators of the US Economy are reinforcing expectations that borrowing costs will remain elevated for an extended period, potentially dampening demand. brent crude futures declined by nine cents, or 0.1 percent, to trade at USD83.52 per barrel. Similarly, US West Texas Intermediate (WTI) crude futures fell by three cents, or 0.04 percent, settling at USD79.19 by 0046 GMT.

Recent data from the American petroleum Institute (API) revealed that crude oil and gasoline inventories in the United States saw a decrease last week, while distillate inventories rose. Specifically, crude stocks dropped by 6.49 million barrels in the week ending May 24, gasoline stocks decreased by 452 thousand barrels, and distillate stocks increased by 2.045 million barrels. The US Energy Information Administration (EIA) is set to release its data later on Thursday, which will provide further insights into inventory levels.

The current increase in global oil inventories, attributed to a decline in fuel demand, may bolster the inclination of producers within the OPEC+ alliance—which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia—to continue implementing supply cuts. This potential strategy will be a key topic of discussion at their upcoming meeting on June 2, as indicated by representatives of member countries and analysts. This approach aims to stabilize the market amidst fluctuating demand and inventory levels.

 source :menafn