The strength of the dollar and large increases in inventories put downward pressure on crude oil prices.
The oil prices fell more than 1% on Wednesday as a dollar stronger and large increases in fuel inventories in USA last week pressured prices, reversing earlier gains stemming from reduced supplies of Russia and other members of the OPEC.
He Brent fell 82 cents, or 1.06%, to $76.23 a barrel, while U.S. crude West Texas Intermediate (WTI) fell 87 cents, or 1.17%, to $73.38. Both benchmarks were up more than 1% at the start of the session.
“The oil market is being affected by the significant increases in gasoline and diesel inventories that we have seen in recent weeks,” he told Reuters. Andrew Lipow, president of Lipow Oil Associates. “Fuel inventories increased as refineries continued to increase production,” he added.
fuel reserves
Gasoline stocks rose by 6.3 million barrels last week to 237.7 million barrels, compared with analysts’ expectations in a Reuters poll for an increase of 1.5 million, according to data released on Wednesday. for the Energy Information Administration of the United States.
The reserves of distillates They rose by 6.1 million barrels on the week to 128.9 million barrels, compared to expectations for an increase of 600,000 barrels. “I would be concerned that in the coming weeks there will be greater accumulations of products. Meanwhile, the cold snap could limit the supply of crude oil and increase demand for heating oil,” he said. Josh Young investment director of Bison Interests.
Crude inventories fell by 959,000 barrels to 414.6 million barrels on the week, compared with analysts’ expectations for a reduction of 184,000 barrels.
In turn, a dollar The strongest pressure on prices was made by making oil more expensive for holders of other currencies.
“Crude oil fell slightly in response to a strengthening dollar following news reports that Trump is considering declaring a national economic emergency to provide a legal basis for universal tariffs,” he said. Ole Hansen, Saxo Bank analyst.
To limit losses, the production of the Organization of Petroleum Exporting Countries fell in December after two months of increases, as the maintenance of the fields in the United Arab Emirates offset an increase in production in Nigeria and gains elsewhere in the group.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
