Oil Prices Ease As US Gasoline Stocks Surge

Oil prices fell on Thursday after a two-day gain after official data showed a big increase in U.S. gasoline stocks, raising demand concerns at a time when supplies around the world are rising.

Brent crude for June settlement eased 46 cents, or 0.7 percent, to $62.70 a barrel while U.S. oil futures were down 55 cents, or 0.9 percent, at $59.22.

While crude stocks in the United States fell more than forecast by analysts, gasoline inventories jumped sharply against expectations, the Department of Energy said on Wednesday.

In its Weekly Petroleum Status Report, the U.S. Energy Information Administration (EIA) said Wednesday that oil inventories dropped by 3.5 million barrels for the week ended April 2, bringing stockpiles to a five-week low.

However, gasoline stocks increased by 4 million barrels, against expectations of a decline as refiners ramped up production before the summer driving season.

Investors were also weighing plans by OPEC+ to progressively add production amid bets on a significant boost in oil demand over the coming months as vaccinations gain pace.

The Organization of Petroleum Exporting Countries and its allies have announced a roadmap to ease production curbs over the three months to July by restoring more than 2 million barrels a day.

The material has been provided by InstaForex Company – www.instaforex.com