BusinessOil & Gas/Mining

Oil dips on rising US stockpiles, cautious supply expectations

Brent crude oil futures fell 57 cents, or 0.69%, to US$82.59 a barrel by 0645 GMT. U.S. West Texas Intermediate crude futures fell 53 cents, or 0.68%, to US$77.85 a barrel

 Oil prices fell in Asian trade on Wednesday as industry data showed a pile-up in crude and fuel inventories in the U.S., a sign of weak demand, and cautious supply expectations emerged ahead of an OPEC+ policy meeting next month.

Brent crude oil futures fell 57 cents, or 0.69%, to US$82.59 a barrel by 0645 GMT. U.S. West Texas Intermediate crude futures fell 53 cents, or 0.68%, to US$77.85 a barrel.

Both benchmarks fell marginally in the previous session on signs of easing supply tightness and weaker global oil demand from an EIA forecast report on Tuesday.
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U.S. 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 U.S. 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.”

 

 

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Source
Reuters
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