Oil prices fall on US gasoline stockpiles
Oil prices fell on Thursday after a surprise jump in US gasoline inventories, with investors focused on an OPEC+ meeting later this week to discuss oil output policy.
Brent crude futures were down 14 cents, or 0.2%, at $72.69 a barrel by 0401 GMT, while U.S. West Texas Intermediate crude futures were also down 14 cents, or 0.2%, at $68.58 a barrel.
Trading is expected to be thin as the U.S. Thanksgiving holiday begins on Thursday.
Oil prices are likely to maintain their near-term bearish momentum as risks of supply disruptions fade in the Middle East and from higher-than-expected U.S. gasoline inventories, said Yeap Jun Rong, market strategist at IG.
Slowing fuel demand growth in top consumers the United States and China has weighed on oil prices this year, although supply curbs from OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, have limited losses.
OPEC+ meets on Sunday. Two sources at the producer group told Reuters on Tuesday that members had discussed further delays to a planned increase in oil output due to start in January.
Brent and WTI have each lost more than 3% so far this week, under pressure from Israel’s agreement to a ceasefire deal with Lebanon’s Hezbollah group. The truce began on Wednesday and helped ease concerns that the conflict could disrupt oil supplies from the key Middle East producing region.
Market participants are unsure how long the lull in fighting will last, with the broader geopolitical backdrop for oil still unclear, analysts at ANZ Bank said.
Source: Investing.com
