Wednesday 3 August 2022

Oil falls 2% on U.S. crude, gasoline build, slight OPEC+ hike | Reuters

Oil falls 2% on U.S. crude, gasoline build, slight OPEC+ hike | Reuters

Oil prices slid 2% on Wednesday as U.S. crude and gasoline stockpiles unexpectedly surged higher last week and after OPEC+ said it would raise its oil output target by only 100,000 barrels per day (bpd).

Brent crude futures were down $2.35, or 2.4%, at $98.19 a barrel by 11:09 a.m. ET (1509 GMT). West Texas Intermediate (WTI) crude futures slipped by $2.30, or 2.5%, to $92.10. 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 concern over tight supply are abating. The premium for WTI futures for the same months touched a near four-month low.

U.S. crude oil inventories rose unexpectedly last week as exports fell and refiners lowered their runs, while gasoline stocks also posted a surprise build as demand slowed, the Energy Information Administration said.

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