US West Texas Intermediate crude futures fell 70 cents, or 1.7 percent, to $ 39.46 a barrel, after jumping 4.9 percent on Wednesday.Prices also fell due to a more than expected increase in stocks of US distillates, which include diesel and heating oil, raising concerns about fuel demand in the world’s largest economy and consumer of fuel.
Yesterday, Wednesday, US Energy Information Administration data revealed that distillate stocks increased by 3.5 million barrels last week.
The administration stated that the weekly demand for fuel decreased to 2.81 million barrels per day, down 27.2 percent compared to the same period last year.Energy companies began returning crews to offshore oil platforms in the Gulf of Mexico, after Hurricane Sally made landfall.
Production of nearly 500 thousand barrels per day of offshore oil in the Gulf of Mexico in the United States stopped prior to the arrival of the storm.
Sources told Reuters that a committee of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC + group, are meeting today to consider the market situation.
But it is unlikely to recommend additional cuts to oil production, despite the recent price decline.