(MENAFN) In early Asian trading on Wednesday, oil prices experienced declines, reflecting concerns raised by sector data indicating an increase in crude and fuel inventories in the United States. The rise in inventories suggests a potential weakness in demand, prompting caution among investors ahead of an upcoming meeting of the OPEC+ bloc.
Brent crude futures dropped by 50 cents, equivalent to 0.6 percent, settling at USD82.66 per barrel by 0624 GMT, while US West Texas Intermediate crude futures slipped by 44 cents, representing a 0.56 percent decline, to reach USD77.94 per barrel.
The modest downturn in crude oil prices in the previous session can be attributed to signs of easing supply constraints coupled with subdued global demand for oil, as indicated by a forecast report released by the International Energy Agency on Tuesday.
Data from the American Petroleum Institute revealed a notable uptick in US crude inventories, which increased by 509,000 barrels in the week ending May 3. The report also highlighted rises in gasoline and distillate stocks. Official government data on crude and fuel inventories in the United States is slated for release at 1430 GMT, with analysts surveyed by Reuters anticipating a decline of approximately 1.1 million barrels in US crude inventories for the previous week.
Market sentiment remained cautious regarding potential supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and its allies within the OPEC+ bloc ahead of their policy meeting scheduled for June 1. The anticipation of OPEC's decision added further pressure on oil markets, contributing to the downward trend in prices observed in Asian trading.
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