A drop in oil prices has been recorded in the world market on the prospect of a cease-fire in Gaza.
According to US government data, crude oil and fuel stockpiles rose more than expected due to weaker demand and lower oil exports.
U.S. crude oil inventories rose by 5.8 million barrels in the week ended April 5, more than double what analysts had expected.
Inventories of refined products rose unexpectedly, with gasoline up 700,000 barrels and distillate stocks up 1.7 million barrels.
U.S. Energy Information Administration (EIA) data also showed a drop of about 2.1 million barrels per day (bpd) in supply of oil products, a proxy for fuel demand, and crude oil. Exports decreased by 2.7 million barrels.
In addition, the American EIA sharply increased its forecast for crude oil production. It is now expected to increase by 280,000 bpd to 13.21 million bpd in 2024, up from the 20,000 bpd increase previously forecast.
The EIA says it expects Brent crude prices to average $88.55 a barrel in 2024, up from its previous forecast of $87 and has projected its demand growth for the past 2 years. Goi has been upgraded.
“Broadly it has reaffirmed the outlook for the oil market with OPEC plus,” SEB analyst Bajran Shelldrop said.
Fitch downgraded its outlook on China’s sovereign credit rating to negative, citing risks to public finances.