Wednesday 29 June 2022

Oil slides 2% on rising U.S. fuel stocks and output | Reuters

Oil slides 2% on rising U.S. fuel stocks and output | Reuters

Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.

Brent futures for August delivery fell $1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.

U.S. West Texas Intermediate crude for August fell $1.98, or 1.8%, to settle at $109.78.

The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.

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