2024-05-01 00:46:31
Oil prices fell for a third time on Wednesday, driven by rising inventories and crude production in the United States, the world’s biggest oil consumer, as well as increased hopes for a ceasefire in the Middle East.
Brent oil futures for July fell 47 cents, or 0.5%, to $85.86 a barrel by 0005 GMT. US West Texas Intermediate crude for June fell 53 cents, or 0.6%, to $81.40 a barrel.
US crude oil inventories rose by 4.906 million barrels last week, while gasoline and distillate inventories fell, according to market sources citing figures from the American Petroleum Institute on Tuesday.
Gasoline inventories decreased by 1.483 million barrels and distillates by 2.187 million barrels. Official EIA data is expected at 10:30 am EDT (1430 GMT).
US crude supplies are also showing signs of increasing, with production at 13.15 million barrels per day (bpd) in February compared with 12.58 million bpd in January, the biggest monthly increase in 3½ years, the Energy Information Administration on Tuesday.
The prospect of a ceasefire between Israel and Hamas, following a new move by Egypt to restart stalled negotiations between the two sides, has pushed oil prices lower. Ending the war would reduce fears of an extension of the conflict that could affect supplies from the Middle East.
Production in the Organization of the Petroleum Exporting Countries (OPEC) fell 100,000 bpd in April to 26.49 million bpd, according to a Reuters survey on Tuesday. This fall is explained by the reduction in exports from Iran, Iraq and Nigeria, in the context of a voluntary reduction in supply by certain members, in agreement with the OPEC+ alliance.
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