Oil Prices Dip on Surging U.S. Stockpiles, OPEC+ Maintains Output Policy

27 Mar 2024 , 11:21 AM

Oil prices decline for a second consecutive day amid reports of a surge in U.S. crude stockpiles and indications that major producers will maintain current output levels.

Brent crude futures for May drop by 0.8% to $85.56 a barrel, with the June contract declining by 0.7% to $85.03.

U.S. WTI crude futures for May delivery fall by 0.7% to $81.07 a barrel. U.S. crude inventories reportedly increase by 9.3 million barrels, while distillate inventories rise by 531,000 barrels. Gasoline stocks, however, decline by 4.4 million barrels.

OPEC+ is unlikely to adjust oil output policies until its full ministerial gathering in June, according to three OPEC+ sources. A meeting next week will review market conditions and members' compliance with output cuts.

OPEC+ had previously agreed to extend output cuts of approximately 2.2 million barrels per day until the end of June. Russia has reportedly instructed companies to reduce output, while Iraq plans to lower exports to compensate for earlier overproduction.

Concerns arise over OPEC's ability to adhere to production cuts, as highlighted by Iraq's past overproduction. 

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