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Investing.com – Data has now been released to record an increase of more than 2.9 million barrels, while expectations were hovering around a decline of 917 thousand barrels.
The US Energy Administration’s information data revealed an increase in oil inventories by 2.951 million barrels, compared to expectations for a decrease of 917 thousand barrels, while it recorded a decline in the week before last by 1.280 million barrels.
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It fell today, ending a three-day rally after a sudden increase in US oil inventories raised fears of weak demand and inflation data indicated the possibility of US interest rates remaining at a high level.
In a possible sign of weak demand, US crude inventories rose by 3.6 million barrels in the week ending May 5, while gasoline stocks rose by 399,000 barrels, the American Petroleum Institute reported on Tuesday.
The market is also awaiting the monthly report of the Organization of the Petroleum Exporting Countries (OPEC), due on Thursday, for indications of whether the group and its allies need to cut production again to boost prices.
The organization and its allies, in what is known as the OPEC + group, decided last month to reduce production by 1.16 million barrels per day from May until the end of the year, and it is scheduled to hold its meeting on production policy on the fourth of June.
Energy Agency forecasts
The US Energy Information Administration (EIA) said in its short-term energy outlook published on Tuesday that it raised its forecast for global oil demand for 2023 by 120,000 barrels per day, with the US agency now expecting oil demand to grow by 1.6 million barrels per day.
However, the agency lowered its estimate for oil demand growth during 2024 by 130,000 barrels per day to 1.7 million barrels per day on an annual basis.
Prices now
It is now declining by 1.95% to 75.9 per barrel.
Texas crude fell 2.1% to $72.15 a barrel.
2023-05-10 14:30:00
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