June 5, 2023

Dubai Week

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Biggest rise in US oil stocks, contrary to expectations.. and prices lost 2%. By Investing.com

© Reuters.

Investing.com – Data has just been released to record an increase of more than 2.9 million barrels, while expectations are around a decline of 917 thousand barrels.

Data from the US Energy Administration showed a rise in oil inventories of 2.951 million barrels, compared with expectations for a decline of 917 thousand barrels, which fell by 1.280 million barrels last week.

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It fell today, ending a three-day rally after a sudden rise in U.S. oil inventories raised fears of weak demand and inflation data raised concerns about the possibility of U.S. interest rates staying at higher levels.

In a possible sign of weaker demand, U.S. crude inventories rose by 3.6 million barrels in the week ended May 5, while gasoline stocks rose by 399,000 barrels, the American Petroleum Institute said on Tuesday.

The market awaits Thursday’s monthly report from the Organization of the Petroleum Exporting Countries (OPEC) for signs of whether the group and its allies will need to cut output again to boost prices.

The organization, known as the OPEC+ group, and its allies decided last month to cut production by 1.16 million barrels from May to the end of the year, and it is scheduled to hold a meeting on production policy. Fourth of June.

Energy Agency projections

The US Energy Information Administration (EIA) said in its short-term energy outlook released on Tuesday that it raised its forecast for global oil demand by 120,000 barrels per day for 2023, after the US agency now expects oil demand to increase by 1.6 million barrels. per day.

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However, the company cut its estimate for oil demand growth in 2024 by 130,000 barrels per day to 1.7 million barrels per day on an annualized basis.

Prices now

It is now down 1.95% to 75.9 per barrel.

Texas crude fell 2.1% to $72.15 a barrel.