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05/06/24
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Crude Prices Ease as Demand Jitters Are Bolstered by US Fuel, Crude Stock Builds
On Wednesday, crude prices inched down as an unexpected build in U.S. crude stocks and a bigger-than-expected increase in fuel stocks fueled demand worries amid concerns of an increase in supply later in the year.
Brent crude futures were 24 cents, or 0.3% lower, to $77.27 per barrel. U.S. West Texas Intermediate crude futures were 23 cents, or 0.3% down, at $73.02 per barrel.
Data from the U.S. Energy Information Administration showed U.S. crude stocks rose by 1.2M barrels in the week that ended on May 31, versus analysts’ expectations for a 2.3M barrel draw.
The build was however lower than Tuesday’s reading from the American Petroleum Institute of an increase of over 4M barrels.
Gasoline inventories were 2.1M barrels higher compared with expectations for a rise of 2M barrels. This added to demand worries as the week showed fuel usage around the Memorial Day holiday, which is normally seen as the beginning of the summer driving season in the U.S.
EIA data showed distillate stocks lifted by 3.2M barrels versus estimates of a 2.5M increase.
Both contracts have dropped for five consecutive sessions and fell over 1% on Tuesday to the lowest settlement levels since Feb.
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