Oil Extends Drop as US Stockpile Build Amplifies Glut Concerns
Oil extended a decline as higher US crude stockpiles reinforced worries about an oversupplied market, with geopolitical concerns also in focus.
West Texas Intermediate fell toward $61 a barrel after shedding almost 2% over the previous two sessions, with Brent crude closing below $65. Commercial inventories of crude rose for a second week, with gauges of both gasoline and distillate demand also weak even as the summer driving season fast approaches.
Crude remains under pressure as OPEC and its allies add barrels back into a market that’s already looking well-supplied. Geopolitical elements also remained in play, including fast-faltering nuclear talks between the US and Iran, as well as the possibility of a peace deal between Russia and Ukraine, both of which could shift sanctions policy and impact global balances.
WTI for July delivery fell 0.4% to $61.31 a barrel at 7:19 a.m. in Singapore.
Brent for July settlement closed 0.7% lower at $64.91 a barrel.
Source: Bloomberg
