(MENAFN) In the early hours of Wednesday's Asian trading session, oil prices experienced a decline, prompted by sector data indicating an uptick in both crude and fuel inventories within the United States. This trend suggests a potential softening in demand, amplifying concerns amongst investors. Additionally, cautious sentiments prevailed regarding supply expectations ahead of an impending meeting of the OPEC+ alliance slated for next month.
Brent crude futures witnessed a decrease of 30 cents, equivalent to 0.36 percent, settling at USD82.86 per barrel by 0348 GMT. Similarly, US West Texas Intermediate crude futures recorded a decline of 25 cents, or 0.32 percent, reaching USD78.13 per barrel.
The recent decline in crude oil prices follows a pattern observed in the previous session, as market indicators hinted at a lessening of supply constraints alongside indications of subdued global demand for oil. This assessment is underscored by a forecast report issued by the International Energy Agency on Tuesday, which contributed to a tempered outlook amongst market participants.
Citing figures from the American Petroleum Institute, market sources reported a notable increase in US crude inventories by 509,000 barrels for the week ending May 3. Moreover, both gasoline and distillate stocks also experienced a rise during the same period. Investors are awaiting official government data on crude and fuel inventories in the United States, scheduled for release at 1430 GMT. Analysts polled by Reuters anticipate a decline of approximately 1.1 million barrels in US crude inventories for the preceding week.
Amidst these developments, market sentiment is influenced by cautious expectations concerning potential supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and its allies within the OPEC+ bloc. With a policy meeting slated for June 1, uncertainties loom over the extent to which production levels may be adjusted, adding further complexity to the current landscape of oil market dynamics.
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