And the US Energy Information Administration said crude oil inventories rose by about eight million barrels in the week ending June 9. Analysts had expected a decline of 500,000 barrels earlier.
Gasoline and diesel inventories also rose more than expected.
price movement
As of 1555 GMT, Brent crude futures were down 51 cents, or 0.7%, at $73.82 a barrel. U.S. West Texas Intermediate crude fell 51 cents, or 0.7%, to $69.92 a barrel.
Both commodities rose more than 3% on Tuesday on hopes of a boost in fuel demand after China’s central bank cut interest on short-term loans.
Market participants expect the U.S. central bank’s Federal Open Market Committee to temporarily stop raising interest rates amid uncertainty over the economic outlook and the lingering effects of rising interest rates. interest ten times since March 2022.
A rise in rates supports the dollar, making commodities denominated in it more expensive for holders of other currencies. Stopping the increases would stimulate economic growth and demand for oil, which would support prices.
“Oil today will be determined by the Federal Open Market Committee,” said Price Group analyst Phil Flynn. “The market is currently priced broadly on the basis that the Federal Reserve will pause the historic rate hike cycle, which is supportive for oil prices.”
International Energy Agency forecasts
The International Energy Agency has raised its forecast for oil demand growth this year by 200,000 barrels per day to 2.4 million barrels per day, helping to lift expected demand to 102.3 million barrels per day.
However, the agency expects unfavorable economic conditions to curtail demand growth to 860,000 barrels per day next year, and widespread use of electric cars will drive down to 400,000 barrels per day. in 2028.
The agency’s expectations for oil demand growth slightly exceed those of the Organization of the Petroleum Exporting Countries (OPEC).
JPMorgan cut its average Brent price forecast for this year by $9 to $81 a barrel.
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