Oil prices edge lower as rising U.S. crude, gasoline stockpiles stoke demand worries

Crude oil stockpiles rose by 3.6 million barrels last week, according to data released by the Energy Information Administration.

Jun 26, 2024 - 21:14

0 38

Oil prices edge lower as rising U.S. crude, gasoline stockpiles stoke demand worries

Crude oil futures edged lower Wednesday as U.S. oil and gasoline inventories rose, dashing hopes among some traders that a bullish inventory report would breathe life back into the recent rally.

Here are today's energy prices:

West Texas Intermediate August contract: $80.47 per barrel, down 36 cents, or 0.47%. Year to date, U.S. oil has gained 12.1%.Brent August contract: $84.76 per barrel, down 25 cents, or 0.29%. Year to date, the global benchmark is ahead 9.8%.RBOB Gasoline July contract: $2.50 per gallon, up 0.27%. Year to date, gasoline has gained 19.2%.Natural Gas July contract: $2.66 per thousand cubic feet, down 3.3%. Year to date, gas is ahead 6%.

Crude oil stockpiles rose by 3.6 million barrels last week, according to data released by the Energy Information Administration. Analysts were expecting inventories to fall by 2.9 million barrels, according to a Reuters poll.

Gasoline stockpiles rose by 2.7 million barrels, while analysts were expecting a drawdown of 1 million barrels. Rising crude and fuel inventories signal that demand may still be soft.

Oil prices pulled back Tuesday as the recent rally paused, but West Texas Intermediate and Brent are ahead 4.2% and 3.55% for the month as analysts expect summer fuel demand to pick up after a soft start to the season.

"The ubiquitous view is that demand will increase during the summer and with OPEC+ cuts fully in place until October global and OECD stocks ought to deplete," John Evans, analyst at oil broker PVM, said in a Wednesday note.

"Thus, convincing stock draws in the US would go a long way to bolster this optimism," Evans said.

Traders are also monitoring the situation on the Israel-Lebanon border. Israel and the Iran-backed militia group Hezbollah have threatened war recently, after trading fire across the border for months.

There are fears an Israeli offensive in Lebanon could trigger a direct confrontation with OPEC member Iran, potentially jeopardizing crude oil supplies.

Correction: The metric for the natural gas contract is per thousand cubic feet. An earlier version misstated the measurement.