Ana sayfa » Oil near 4-month lows after OPEC+ supply plan, US stockpile increase

Oil near 4-month lows after OPEC+ supply plan, US stockpile increase

Brent and WTI fell Tuesday to their lowest closing levels since early February

by BUNKERIST

Oil prices traded near four-month lows in Asia on Wednesday after rising U.S. crude and refined product inventories rose as markets struggled to digest OPEC+’s decision to increase supply later this year.

Brent crude futures rose 1 cent to $77.53 a barrel by 0638 GMT, while WTI futures fell 2 cents to $73.23 a barrel.

Both contracts fell nearly a dollar on Tuesday to their lowest closing levels since early February, after falling nearly $3 a barrel on Monday.

The decline came after news of OPEC+ plans to increase supply from October despite recent signs of weakening demand growth.

Brent remains under pressure from the market, which continues to view OPEC’s proposed timeline for voluntary cuts as a binding commitment, regardless of the underlying oil outlook or end-of-summer sentiment.

The intention was to slowly bring back supply and not send the market into a tailspin. However, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said OPEC+ would stop short of halting cuts or rolling them back if demand is not strong enough to absorb the barrels.

Ultimately, the scale of the sell-off has been exaggerated, with crude supplies expected to tighten in the third quarter and OPEC+’s plans to roll back supply cuts unlikely to materialize until October.

According to the sources and the American Petroleum Institute U.S. crude figures, gasoline, and distillate inventories rose last week.

API data showed crude inventories rose by more than 4 million barrels in the week ending May 31, became contrary to analysts’ estimates of a 2.3 million barrel decline. Gasoline stocks rose by more than 4 million barrels, twice the increase analysts had expected.

The U.S. Energy Information Administration will release official stockpile data at 1430 GMT on Wednesday.

The data for last week is being closely watched by markets because it reflects fuel use around the Memorial Day holiday, the so-called start of the U.S. driving season.