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Oil prices dip as weak demand and U.S. stocks soar weigh

Oil prices eased by more than 2 percent on Wednesday, which was triggered by a weak demand and an U.S. crude oil inventories surge, despite the fact, that for the time being OPEC-led policy still weighs.

crude prices slip 1206Photo: Pixabay

Brent crude futures for August delivery lost 1.85 percent on Wednesday to $61.14 a barrel, while futures for WTI crude oil (West Texas Intermediate) dipped 2.06 percent to $52.16 a barrel at 13.11 GMT.

An unexpected jump in U.S. oil inventories affected the market sentiment and commodity prices went down.

U.S. oil stocks grew by 4.9 million barrels for the week ending on June 7 to 482.8 million barrels, according to API’s statistics on Tuesday. Meanwhile, analysts were expecting a decrease in black gold reserves by 481,000 barrels.

The uncertainty of macroeconomic prospects and unstable oil production in Iran and other countries may lead to the fact that OPEC may not extend further the agreement on reducing the supply of crude oil, according to Goldman Sachs note.

The OPEC meeting is to be held on June 25, after which negotiations will be held on June 26 with all members of OPEC +, led by Russia, who proposed to postpone the meeting to July 3-4.

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