Oil prices slid 3% on Wednesday, with losses accelerating after US data showed crude and gasoline stockpiles unexpectedly surged last week after OPEC+ said it would raise its oil output target by just 100,000 barrels per day (bpd).
Brent crude futures were down $2.90, or 2.9%, at $97.61 a barrel by 1617 GMT. West Texas Intermediate (WTI) crude futures fell $2.93, or 3.1%, to $91.49. Both contracts had seesawed previously. The premium for front-month Brent futures over barrels loading in six months’ time is at a three-month low, indicating waning concern about tight supply. The same premium for WTI futures neared a four-month low.
US crude oil inventories rose unexpectedly last week as exports fell and refiners lowered runs, while gasoline stocks also posted a surprise build as demand slowed, the Energy Information Administration said. Crude stocks rose 4.5 million barrels last week, compared with an analyst forecast for a draw of 600,000 barrels. Gasoline stocks gained 200,000 barrels, versus expectations for a 1.6-million-barrel drop.
Published in The Express Tribune, August 4th, 2022.
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