You are here: Home » International » News » Markets
Business Standard

Oil prices fall as market weighs mixed supply signals

The International Energy Agency on Wednesday warned that from May onwards roughly 3 million barrels per day of Russian oil could be shut-in due to sanctions or voluntary embargoes

Topics
oil trade | Oil Prices | crude oil supply

Reuters  |  LONDON 

oil
U.S. gasoline stocks fell 3.6 million barrels last week.

slipped on Thursday in thin trade ahead of a public holiday, as traders weighed a larger-than-expected build in U.S. oil stocks against tightening global supply.

Brent futures were down 59 cents, or 0.5%, at $108.19 a barrel, while U.S. West Texas Intermediate futures were off 57 cents or 0.6%, at $103.68 a barrel at 0906 GMT.

Both contracts on Wednesday had shrugged off a build in U.S. crude inventories to end the trading session roughly 4% higher.

"Asian buyers have been absent today, with volumes potentially being curbed by the long weekend across most of Asia, Europe, and North America," OANDA analyst Jeffrey Halley wrote in a note.

The Energy Agency on Wednesday warned that from May onwards roughly 3 million barrels per day of Russian oil could be shut-in due to sanctions or voluntary embargoes.

At the same time, major global trading houses are also planning to curtail crude and fuel purchases from Russia's state-controlled oil companies in May, Reuters reported on Wednesday.

The probability of a EU ban on Russian oil being agreed may be almost zero, but no one will be able or wanting to say that clearly, Vandana Hari, founder of oil market analysis provider Vanda Insights said.

"And, even a continuing sabre-rattling will be enough to keep the risk premium alive."

Despite signals that global supply disruption will persist, oil stocks in the U.S. rose by more than 9 million barrels last week, the U.S. Energy Information Administration said on Wednesday, driven in part by releases from the nation's strategic reserves. Analysts in a Reuters poll had anticipated just an 863,000-barrel build.

U.S. gasoline stocks fell 3.6 million barrels last week, far above anticipated levels, and distillate inventories also declined.

(Reporting by Mohi Narayan in New Delhi, Liz Hampton in Denver; editing by Richard Pullin and Jason Neely)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 14 2022. 16:48 IST
RECOMMENDED FOR YOU
.