Oil prices fall following a spike in US gasoline inventories
- 08 Apr 2021
Gulf Today Report
Oil prices slipped on Thursday following an increase in US gasoline stocks, causing concerns about demand.
Brent crude eased 36 cents, or 0.6%, to $62.80 a barrel by 01:36 GMT while US Oil fell 38 cents, or 0.6%, to $59.39 a barrel.
The United States stocks dropped beyond analysts’ expectations while the gasoline inventories surged sharply above expectations too, according to the Department of Energy.
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Refiners are ramping up production before summer driving season.
"Refiners may want to pull back on the run rate a bit to keep gasoline storage from challenging the all-time record," said Bob Yawger, director of energy futures at Mizuho Securities.
According to International Monetary Fund, large public spending may lead to a 6% global growth increase this year.
Higher economic growth would boost demand for Oil and its products, helping to reduce stockpiles.