Oil prices fell today after the U.S. Energy Information Administration report Inventories are expected to rise by 1.8 million barrels in the week ending May 17.
This compares with a decline of 2.5 million barrels the previous week, which boosted the benchmark after API estimates suggested a similar decline last week, the second straight week of declines and as demand picks up. It suggests that there is.
The day before the EIA released its report, the American Petroleum Institute estimated that crude and fuels would increase significantly in the week ending May 17, with oil rising by 2.48 million barrels and gasoline inventories increasing by 2 million barrels.
According to the Energy Information Administration, gasoline inventories fell by 900,000 barrels in the week ended May 17, while production averaged 10 million barrels per day.
This compares with a decrease of 200,000 barrels the previous week, when production averaged 9.7 million barrels per day.
Middle distillate inventories increased by 400,000 barrels in the week ending May 17, with production averaging 5.1 million barrels per day.
This compares with a slight decline in inventories and average production of 4.8 million barrels per day in the previous week.
The EIA report could contribute to oil market sentiment, already dominated by pessimism on consumption, following the latest signal from the Federal Reserve, which essentially amounts to extra caution on interest rates. There is sex.
That means the Fed has no intention of cutting rates anytime soon until inflation approaches its 2% target. Fed officials made that point clear this week by advising final decision-makers to refrain from cutting rates for at least a few more months, Reuters reported. report.
On the other hand, crude oil prices have been on a downward trend since the beginning of the week due to severe demand expectations due to continued high interest rates. A report on inventories released by API on Tuesday also strengthened the decline.
Written by Irina Slav for Oilprice.com
