Oil Prices Drop on US Stockpile Build
WTI crude oil prices fell to near $71 a barrel on Wednesday, after earlier falling, weighed down by a larger-than-expected build in US stockpiles. API data showed that US crude inventories rose by 1.6 million barrels last week, more than double the 0.7 million-barrel increase forecast. However, gasoline and distillate inventories fell during the period.
Meanwhile, the market continues to monitor diplomatic efforts in the Middle East as Israel continues its offensive in Gaza and Lebanon. Meanwhile, China’s latest stimulus measures, including a cut in its benchmark interest rate, have provided some support to oil prices. However, concerns remain about the long-term outlook for oil demand in the major importing country. In addition, there are concerns that the global oil market could shift into surplus in the coming quarter, while expectations for a US interest rate cut have eased.
Source: Bloomberg