(MENAFN) On Wednesday, oil rates experienced a second consecutive day of decline following a report indicating a significant surge in crude stockpiles in the United States, the world's largest oil consumer. Additionally, signs emerged suggesting that major oil producers are unlikely to modify their output policy at an upcoming technical meeting next week, as reported by a UK-based news agency.
Brent crude futures for May dropped by 74 cents, or 0.9 percent, reaching $85.51 a barrel at 7:20 a.m. Saudi time. The May contract is slated to expire on Thursday, while the more actively traded June contract declined by 68 cents, or 0.8 percent, settling at $84.95.
US West Texas Intermediate crude futures for May delivery also fell, dropping by 64 cents, or 0.8 percent, to $80.98.
This week, prices retreated from their recent highs reached last week, which marked their highest levels since October. Despite this decline, prices still remain approximately 3 percent above the average closing price observed in the first week of March.
“A sharp rise in US crude inventories and expectations for a potential inaction by OPEC+ in its output policy next week saw further unwinding in oil prices in today’s session, as profit-taking accelerates following a strong rally in mid-March,” stated Jun Rong Yeap, who serves as the market strategist at IG in Singapore.
According to market sources citing figures from the American Petroleum Institute on Tuesday, US crude oil inventories increased by 9.3 million barrels in the week ending March 22. Additionally, distillate inventories saw a rise of 531,000 barrels during the same period.
MENAFN27032024000045015839ID1108026666
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.