Oil prices dip in early trade

26 Jun 2024 , 09:51 AM

Oil prices dipped in early Asian trade on Wednesday after an industry organisation reported a surprising increase in U.S. oil inventory, raising fears about lower-than-expected demand in the world’s largest oil consumer.

Brent crude oil futures slipped 19 cents, or 0.2%, to $84.82 a barrel. United States West Texas Intermediate oil futures declined 11 cents, or 0.1%, to $80.72 per barrel.

According to news reports, the American Petroleum Institute (API) indicated that crude oil stockpiles in the United States increased by 914,000 barrels in the week ending June 21. Reuters analysts predict that crude stockpiles fell by about 3 million barrels last week.

Official US government data on oil and fuel stockpiles is expected at 1430 GMT.

Concerns over a slow start to the U.S. summer driving season contributed to a drop in oil prices in the previous session. According to API, U.S. petrol stockpiles increased by 3.84 million barrels last week, versus experts’ expectations of a 1 million barrel fall.

The US dollar index rose modestly on Wednesday after gaining roughly 0.1% versus a basket of currencies the previous day.

A higher dollar makes dollar-denominated oil more expensive for investors in other currencies.

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