Oil prices dropped for a second session on Thursday, under pressure from an unexpected rise in U.S. crude stocks that raised concerns over demand after prices rallied to multi-year highs.
U.S. crude slid 0.67%, or 52 cents, to $76.91 a barrel by 0649 GMT, after the market climbed on Wednesday to $79.78, the highest since November 2014. Brent crude lost 0.1%, or 8 cents, to $81.00 a barrel.
U.S. crude inventories rose by 2.3 million barrels last week, the U.S. Energy Information Administration (EIA) said, against expectations for a modest dip of 418,000 barrels. Gasoline inventories also rose, while distillate inventories were down slightly.
Global oil prices have jumped more than 50% this year, adding to inflationary pressure that could slow recovery from the COVID-19 pandemic and impact consumer demand. Natural gas and coal prices have also climbed.
The Organization of the Petroleum Exporting Countries and allies (OPEC+) said on Monday it would stick to its pact for a gradual increase in oil output, sending crude prices to multi-year highs.
OPEC+’s decision to raise oil output modestly and gradually, despite this year’s surge in prices, was partly driven by concern that demand and prices could weaken, sources close to the group told Reuters.
· Natural Gas Futures: Downside looks limited
In light of advanced prints from CME Group for natural gas futures markets, open interest dropped by almost 25K contracts on Wednesday following two daily builds in a row. On the other hand, volume advanced for the third consecutive session, this time by around 70.5K contracts.
Natural Gas: Initial contention emerges around $5.60
Thai
Eng