Home > Media News >
Source: http://www.reuters.com
SINGAPORE/LONDON (Reuters/Web Desk) – Oil prices fell on Wednesday as industry data showed a pile-up in crude and fuel inventories in the US, a sign of weak demand, and cautious supply expectations emerged ahead of an OPEC+ policy meeting next month.
Brent crude oil futures fell $1.37, or 1.65 per cent, to $81.79 a barrel by 09:42 GMT. US West Texas Intermediate (WTI) crude futures fell $1.41, or 1.80pc, to $76.97 a barrel.
During the past month, the Brent is down by over 8.50pc while the WTI has fallen by more than 10pc.
US crude stocks rose by 509,000 barrels in the week ended May 3, market sources said, citing American Petroleum Institute figures. Gasoline and distillate fuel inventories also rose, they said.
"API numbers released overnight were moderately bearish due to stock builds in both crude and products... Concern over weaker-than-usual U.S. gasoline demand and this stock-build have weighed on the prompt RBOB gasoline crack," ING analysts said in a client note.
Official US government data on stockpiles is due at 1430 GMT. Analysts polled by Reuters expect U.S. crude oil inventories to have fallen by about 1.1 million barrels last week.
Cautious expectations on supply cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) ahead of a June 1 policy meeting also weighed on markets.
"Oil prices have come under further pressure as noise around OPEC+ production policy grows," the ING analysts said.
"Expectations are that members will extend their additional voluntary supply cuts beyond the second quarter of this year."
Meanwhile, hopes of a ceasefire in Gaza have also put pressure on oil prices in recent sessions, with some analysts saying the risk premium on oil declined in tandem.
"The fall in oil prices since Iran and Israel's back-and-forth attacks suggests that some of the risk premium in prices has now unwound," said economist Bill Weatherburn from Capital Economics in a client note.
"Prices continue to be supported by OPEC+ production cuts but we suspect that members will gradually unwind these cuts from July, pushing oil prices lower," he added.
The US believes negotiations on a Gaza ceasefire should be able to close the gaps between Israel and Hamas. US Central Intelligence Agency Director Bill Burns will travel to Israel on Wednesday for talks with the Israeli Prime Minister Benjamin Netanyahu and other top officials, a source familiar with the matter told Reuters.
Some analyst expectations that short-term demand remains well-supported limited overall price declines.
"Much talk of economic run cuts in recent weeks is overblown in our opinion, with margins still healthy enough, which means rather that Asian demand could rather pick up once turnarounds peak and diminish," said Sparta Commodities analyst Neil Crosby.
Related News
Recommended Articles
Pentagon chief confirms US has paused bomb shipment to Israel to signal concerns over Rafah invasion
Nepra jacks up electricity price by Rs2.83 per unit
IPP payments reach Rs1,800bn amid mounting Pakistan circular debt
Police arrest lawyers after pitched battle outside LHC
Pakistan team off to Ireland for T20 matches ahead of World Cup
May 9 perpetrators will not go unpunished as it's a case of entire Pakistan, says ISPR
Latest News
Recommended News
World's record-breaking temperature streak extends through April
In rapidly ageing China, millions of rural migrant workers can't afford to retire
Flood-hit Brazil scrambles to deliver aid, water amid forecasts of more rain
Paris 2024 gearing up to face unprecedented cybersecurity threat
Latest Shows
Peyam-E-Subh
Mazaq Raat
Dunya Kamran Khan Kay Sath
On The Front
Nuqta E Nazar
Peyam-E-Subh
Mazaq Raat
Dunya Kamran Khan Kay Sath
On The Front
Nuqta E Nazar
Peyam-E-Subh
Must Watch
IHC orders shifting of Bushra Bibi to Adiala Jail from Bani Gala
Police arrest several lawyers after pitched battle outside LHC
Economic reforms, security, human rights discussed with PTI leaders: Matthew Miller
Government increases passport fees in fast-track category again
CM Maryam Nawaz met with Ambassador of Turkmenistan in Pakistan
Another IHC judge calls for contempt action against malicious campaign
Supreme Court Spontaneous Notice
Federal Cabinet meeting chaired by PM Shehbaz Sharif
8-point letter of former Caretaker Energy Minister Muhammad Ali
May 9 perpetrators will not go unpunished as it's a case of entire Pakistan, says ISPR
Download Dunya App
Dunya News
English
Urdu
Programs
videos
Video Headlines
Coronavirus
PSL 7
Newspaper
Follow Us
Links
Blogs
الیکشن 2024 عوامی رائے
کون سی جماعت الیکشن 2024 میں اکثریت حاصل کرے گی ؟
Right Now
8 Nov, 2024 / 01:25 pm
Russian film industry to take center stage at the Dubai International Content Market, DICM
Top Stories