2024-02-29 12:00:00
Written by – Marwa Al-Ghoul Thursday, February 29, 2024 02:00 PM
Oil prices fell in early trading today after data revealed a larger-than-expected growth in US crude inventories, raising concerns about a slowdown in demand, while pressures also increased due to indications that US interest rates may remain high for a longer period.
Brent crude futures fell 22 cents, or 0.3%, to $83.46 per barrel, while US West Texas Intermediate crude futures fell 30 cents, or 0.4%, to $78.24 per barrel, according to the Omani News Agency.
The Energy Information Administration stated yesterday that US crude oil inventories rose, while gasoline and distillate inventories decreased last week as refineries operated at a level below their minimum seasonal levels. Due to stops, both planned and unplanned.
The administration indicated that crude inventories rose for the fifth week in a row, increasing by 4.2 million barrels to 447.2 million barrels in the week ending February 23, compared to analysts’ expectations of an increase of 2.7 million barrels.
Satoru Yoshida, commodity analyst at Rakuten Securities, also explained that large inventories have increased investors’ concerns about the slowdown in the economy and the decline in demand for oil in the United States, expecting that the postponement of the reduction in US interest rates also affected market sentiment because it may undermine demand for oil.
It is noteworthy that high borrowing costs usually lead to a decline in economic growth and demand for oil.
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