Oil slip is US crude oil. Fuel stocks raise demand concerns

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Oil prices tumbled on Wednesday. Subtract profit from previous period After industry data showed an unexpected increase in crude oil and fuel inventories in the United States. which is the world’s largest oil user This raised concerns about fuel demand once again.

U.S. West Texas Intermediate (WTI) crude futures were down 59 cents, or 0.8%, at $74.53 a barrel by 0134 GMT, while Brent crude futures were down 62 cents, or 0.8% at $79.48 a barrel.

U.S. crude inventories rose 14.9 million barrels for the week ended Jan. 6, sources cited by the American Petroleum Institute (API). refined oil stock This includes heating oil and jet fuel. an increase of about 1.1 million barrels

Analysts polled by Reuters had expected crude inventories to fall by 2.2 million barrels and distillate stocks down by 500,000 barrels.

Traders will be watching inventory data from the U.S. Energy Information Administration due Wednesday to see if it matches preliminary views from the API.

Oil markets were lower on concerns about rising US interest rates to curb inflation. This will trigger a recession and reduce fuel demand. This offsets hopes for fuel demand growth in China. which is the world’s second largest consumer of oil While relaxing COVID-19 controls and resuming international travel

“News on Monday that China issued a new set of import quotas. It indicates that the world’s major importers are stepping up to meet rising demand,” analysts at ANZ Research said in a note.

This week’s focus is on US inflation data. which is due on Thursday. If inflation is lower than expected, which will weaken the dollar. analyst said A weaker dollar can boost oil demand. Because it makes commodities cheaper for buyers holding other currencies.

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