Crude Oil prices decline in early trade.

15 Feb 2023 , 09:24 AM

Early Asian trading on Wednesday saw a decline in oil prices after prices dropped by more than $1 per barrel in the previous session as industry data indicated a considerably larger-than-anticipated increase in U.S. crude inventories.

Brent crude prices had fallen 20 cents to $85.38 per barrel, while West Texas Intermediate (WTI) crude futures had fallen 19 cents to $78.87.

According to market sources citing American Petroleum Institute data on Tuesday who talked to Reuters, the amount of petroleum in the United States stockpiles increased by around 10.5 million barrels during the week ending February 10.

The increase exceeded the 1.2-million-barrel surge that nine analysts surveyed by Reuters had predicted, potentially signaling a decline in fuel consumption.

According to news reports, gasoline supplies increased by roughly 846,000 barrels while distillate stocks increased by nearly 1.7 million barrels.

On Wednesday, the government must release its official inventory estimates.

The U.S. Department of Energy’s this week sale of 26 million barrels of oil from the country’s strategic reserve, which is already at its lowest level in about four decades, weighed on crude prices as well.

Due to China’s reopening and an indication of a tighter market, the Organization of the Petroleum Exporting Countries (OPEC) upped its projection for the rise of global oil demand in 2023, marking its first upward revision in months.

According to OPEC, global oil consumption will increase by 2.32 million barrels per day (bpd), or 2.3%, this year, up 100,000 bpd from the previous prediction made in February.

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