Oil Prices Decline in Early Trade

31 May 2024 , 09:11 AM

Early on Friday, oil prices dropped as a result of investors reacting to remarks made by US Federal Reserve officials that it was premature to discuss reducing interest rates. Additionally, the market was affected by an unexpected increase in US petrol supplies.

Brent futures had dropped 12 cents, or 0.15%, to trade at $81.74 per barrel, while West Texas Intermediate (WTI) crude for the United States had dropped 17 cents, or 0.22%, to $77.74.

Despite recent easing, Dallas Federal Reserve President Lorie Logan expressed concern about upside risks to inflation, cautioning that the US central bank must remain adaptable and keep “all options on the table” as it monitors data and determines how to respond.

Logan stated, “It’s really important that we don’t lock into any particular path for monetary policy,” during a talk in El Paso, Texas. “I think it’s too soon to really be thinking about rate cuts.”

The Energy Information Administration (EIA) said on Thursday that U.S. crude oil stocks decreased by 4.2 million barrels to 454.7 million barrels in the week ending on May 24, which was lower than the 1.9 million barrel draw that was predicted in a Reuters poll.

In contrast to expectations that demand would be stronger ahead of the extended Memorial Day weekend, which marks the beginning of the summer driving season, petrol stockpiles increased in the United States. According to the EIA, stocks increased by 2 million barrels over the week to 228.8 million barrels.

According to news, three sources involved with OPEC+ talks said on Thursday that the organisation is working on a complicated agreement to be decided upon at its summit on Sunday that would enable it to prolong some of its significant oil output cutbacks into 2025.

Together, known as OPEC+, the Organisation of the Petroleum Exporting Countries, led by Saudi Arabia and its allies, led by Russia, are now reducing output by 5.86 million barrels per day, or roughly 5.7% of the world’s consumption.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/