Oil prices slip further

8 May 2024 , 09:14 AM

Early on Wednesday in Asian trading hours, oil prices dropped as a result of reports that the American Petroleum Institute’s statistics indicate to rising U.S. crude and fuel inventories, a sign of poor demand.

Brent crude oil futures dropped 21 cents, or 0.3%, to $82.95 per barrel. At $78.25 a barrel, U.S. West Texas Intermediate crude futures dropped 13 cents, or 0.2%.

The week ended May 3 saw a 509,000 barrel increase in U.S. crude stocks, according to news reports quoting data from the American Petroleum Institute. According to them, stocks of distillate fuel and petrol also increased.

At 1430 GMT, official U.S. government stockpile data is expected. According to Reuters polled analysts, the United States’ crude oil inventories decreased by roughly 1.1 million barrels last week.

On indications of a loosening supply constraint, both benchmarks saw a small decline in the prior session. The EIA revised its 2024 forecasts and now anticipates that global production of oil and liquids will increase this year relative to previous estimates, but demand will grow less than originally anticipated.

In recent sessions, there has also been pressure on oil prices due to hopes of a truce in Gaza.

The United States thinks that Israel and Hamas may get closer through talks on a ceasefire in Gaza. According to a Reuters report, U.S. Central Intelligence Agency Director Bill Burns will visit Israel on Wednesday to hold meetings with Israeli Prime Minister Benjamin Netanyahu and other high-ranking officials.

The strengthening US dollar on Wednesday also had an impact on oil prices. Because it becomes more expensive for investors holding other currencies, a higher dollar reduces demand for oil.

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