Despite the decline, expectations for Brent crude to reach this level by the Arab trader

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© Reuters. Why have oil prices fallen?

Arabictrader.com – Prices fell on Thursday after official data showed a large increase in US gasoline stocks, which raised concerns about weak demand in the world’s largest oil consumer as crude supplies rose around the world, and fell 51 cents, or 0.8 percent, to $ 62.65 a barrel. The price of US oil fell 53 cents, or 0.9 percent, to $ 59.24 a barrel.

The US Energy Department said on Wednesday that while crude oil inventories in the United States fell more than analysts’ expectations, gasoline inventories jumped sharply, also against expectations.

Oil inventories decreased by 3.5 million barrels last week to nearly 502 million barrels, and gasoline inventories increased by 4 million barrels, against expectations of a decline to just over 230 million barrels, as refineries (SE 🙂 boosted production before the summer driving season.

Bob Yoger, energy futures manager at Mizuho Securities, said: Refiners may want to pull back from operating a bit to keep gasoline storage from ever challenging the record, and dealers said at the same time, supply is rising worldwide as production increases Russian average levels in March in the first few days of April.

Iran may see some sanctions lifted and global supplies increase, as the United States and other powers hold talks about reviving a nuclear deal that almost prevented Iranian oil from reaching the market, however, the International Monetary Fund said earlier this week that the massive public spending that was published To combat the Coronavirus pandemic, global growth may increase to 6% this year, a rate not achieved since the 1970s, and high economic growth would boost demand for oil and its products, which would help reduce stocks.

ANZ Research said in a note: The more positive macro background is also likely to attract more investor interest in the sector, reiterating its view that Brent crude will reach $ 75 a barrel in the third quarter.

At the same time, dealers said that supply is rising around the world as Russian production increases from average March levels in the first few days of April. Iran may see some sanctions lifted and global supplies increase, as the United States and other powers hold talks about reviving an accord. Nuclear nearly prevented Iranian oil from reaching the market.

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