Oil prices decline after US crude inventories surge

Oil prices decline after US crude inventories surge

Shafaq News/ Oil prices fell on Thursday after a larger-than-expected jump in U.S. crude inventories, raising concerns about demand in the world's largest economy and top oil consuming nation.

Brent crude futures fell 34 cents, or 0.4%, to $81.26 a barrel at 0337 GMT, while U.S. West Texas Intermediate crude futures declined 38 cents, or 0.5%, to $76.26 a barrel.

Both contracts lost more than $1 a barrel on Wednesday, pressured by the rise in U.S. crude inventories, as refining dropped to its lowest levels since December 2022.

The Energy Information Administration (EIA) said U.S. crude inventories jumped by 12 million barrels to 439.5 million barrels in the week to Feb. 9, far exceeding analysts' expectations in a Reuters poll for a 2.6-million-barrel rise.

However, the EIA data also showed that gasoline and distillate stocks fell more than forecast. Gasoline stocks fell by 3.7 million barrels to 247.3 million barrels versus expectations for a 1.2-million-barrel draw.

Distillate stockpiles declined by 1.9 million barrels to 125.7 million barrels, compared with expectations for a 1.6-million-barrel drop.

Fuel demand is holding up, helped by a return to pre-COVID levels of air travel, JPMorgan analysts said.

On the supply side, Kazakhstan said it will compensate for its oil overproduction in January within the next four months, in line with its OPEC+ commitments. Iraq also said it will review its oil production and address any excess output above its OPEC+ voluntary cuts in the coming four months, if found.


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