403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Oil Prices Decline Amid Rising U.S. Fuel Inventories And Strong Dollar
(MENAFN- The Rio Times) On January 8, 2025, Reuters reported a notable decline in oil prices due to a stronger dollar and increased fuel inventories in the United States.
Brent crude oil prices fell by 1.16%, settling at $76.23 per barrel, while West Texas Intermediate (WTI) dropped by 1.25% to $73.32 per barrel. Earlier in the session, both benchmarks had experienced gains exceeding 1%.
The increase in U.S . fuel inventories significantly influenced market dynamics. gasoline Stocks surged by 6.3 million barrels, reaching a total of 237.7 million barrels, which surpassed analysts' expectations of a 1.5 million barrel increase.
Distillate inventories also rose by 6.1 million barrels, totaling 128.9 million barrels, against an anticipated increase of just 600,000 barrels. Andrew Lipow, president of Lipow Oil Associates, pointed out that refiners have been ramping up production.
This increase in production occurred despite fuel demand dropping to its lowest levels in two years. As a result, substantial inventory increases were observed. This trend raises concerns about future demand and market stability.
In contrast, crude oil inventories experienced a slight decrease of 959,000 barrels, bringing the total to 414.6 million barrels. Analysts had expected a larger decline of 184,000 barrels.
The strong dollar further pressured oil prices by making crude more expensive for holders of other currencies. This situation complicates the balance between supply and demand in a market already grappling with uncertainties.
Looking ahead, analysts express caution regarding potential continued inventory increases in the coming weeks. Cold weather forecasts may drive up heating oil demand, potentially tightening supply.
Brent crude oil prices fell by 1.16%, settling at $76.23 per barrel, while West Texas Intermediate (WTI) dropped by 1.25% to $73.32 per barrel. Earlier in the session, both benchmarks had experienced gains exceeding 1%.
The increase in U.S . fuel inventories significantly influenced market dynamics. gasoline Stocks surged by 6.3 million barrels, reaching a total of 237.7 million barrels, which surpassed analysts' expectations of a 1.5 million barrel increase.
Distillate inventories also rose by 6.1 million barrels, totaling 128.9 million barrels, against an anticipated increase of just 600,000 barrels. Andrew Lipow, president of Lipow Oil Associates, pointed out that refiners have been ramping up production.
This increase in production occurred despite fuel demand dropping to its lowest levels in two years. As a result, substantial inventory increases were observed. This trend raises concerns about future demand and market stability.
In contrast, crude oil inventories experienced a slight decrease of 959,000 barrels, bringing the total to 414.6 million barrels. Analysts had expected a larger decline of 184,000 barrels.
The strong dollar further pressured oil prices by making crude more expensive for holders of other currencies. This situation complicates the balance between supply and demand in a market already grappling with uncertainties.
Looking ahead, analysts express caution regarding potential continued inventory increases in the coming weeks. Cold weather forecasts may drive up heating oil demand, potentially tightening supply.
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.
Comments
No comment