Oil falls on unexpected rise in US gasoline inventories By Investing.com

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© Reuters.

By Gina Lee Investing.com – Oil was down in Asia Thursday morning as concerns grew over weakening demand for crude in the world’s largest oil consumer along with rising stocks. they were down 0.33% to $ 26.95 at 11:23 PM ET (3:23 AM GMT) and down 0.33% to $ 59.57. The US showed an extraction of 3,522 million barrels, against the extraction of 1,436 million barrels in the forecasts prepared by Investing.com and the extraction of 876,000 barrels reported the previous week. the day before, it produced a draw of 2,618 million barrels. EIA data also said it jumped to 4,044 million barrels, against the 221,000 barrel draw in the forecasts prepared by Investing.com and the 1.735 million barrel draw reported during the previous week. Some investors called for caution as refineries ramp up production ahead of the summer driving season. “Refiners may want to lower the run rate a bit to prevent gasoline storage from challenging the all-time high,” Mizuho Securities director of energy futures Bob Yawger told Reuters. Meanwhile, the global supply of crude oil is also increasing as Russia reportedly increased its production from average March levels in the first days of April. Iranian supply could also increase, as talks continue about reactivating a nuclear deal with the United States and other countries and raise the possibility of lifting some sanctions. However, investors continue to hope for a recovery in fuel demand based on the IMF’s prediction of better-than-expected global growth in 2021. The organization said earlier in the week that unprecedented public spending deployed to combat the COVID-19 could boost global growth to 6%, a rate that has not been achieved since the 1970s. A more optimistic economic outlook would boost demand for the black liquid, which in turn would keep reserves in check.

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