Active Stocks
Tue Mar 19 2024 15:01:05
  1. Tata Consultancy Services share price
  2. 3,985.40 -3.84%
  1. Tata Steel share price
  2. 149.25 -0.23%
  1. Bharti Airtel share price
  2. 1,229.90 0.40%
  1. Power Grid Corporation Of India share price
  2. 259.65 -2.02%
  1. ITC share price
  2. 409.50 -1.89%
Business News/ Markets / Commodities/  Oil prices fall as US stockpiles rise
BackBack

Oil prices fall as US stockpiles rise

Investors now await the OPEC’s monthly oil market outlook scheduled to be released on 11 August. In its July report, the cartel had said that global oil demand is likely to rise in 2023 but at a slower pace than 2022.

U.S. crude stocks rose by about 2.2 million barrels for the week ended 5 August. (File Photo: AP)Premium
U.S. crude stocks rose by about 2.2 million barrels for the week ended 5 August. (File Photo: AP)

NEW DELHI: Crude oil prices fell on Wednesday after data released showed an unexpected build-up US inventories, highlighting demand concerns. According to data from American Petroleum Institute, US crude stockpiles rose by about 2.2 million barrels in the week ended 5 August.

At 1050 am, the October contract of Brent on the Intercontinental Exchange was at $96.12 per barrel, down 0.20% from previous close. September West Texas Intermediate (WTI) futures on the NYMEX fell 0.33% to $90.20 a barrel.

Ravindra Rao, head of commodity research at Kotak Securities, said, “API weekly report is largely negative as it noted a bigger than expected 2.156 million barrels increase in US crude oil stocks, a slightly smaller than expected decline in gasoline stocks and an unexpected rise in distillate stocks. API report has raised prospect of an increase in US crude stocks and if EIA report due later today matches API report , we may see some correction in prices."

Rahul Kalantri, VP Commodities, Mehta Equities Ltd noted, that crude prices traded lower even as oil exports from Russia to Europe were suspended through the Druzhba pipeline which passes through Ukraine.

“On the other hand, surging covid-19 cases in China once again raised concerns of lower oil demand in the coming days. OPEC+ nations are also gradually increasing their oil outputs even as global industrial activities have been slowing down due to Covid-19 and geo-political tensions thus impacting global oil demand. The U.S. inflation report will also be in focus today, which also gives directions to the global commodity prices," Kalantri said.

Investors now await the OPEC’s monthly oil market outlook scheduled to be released on 11 August. In its July report, the cartel had said that global oil demand is likely to rise in 2023 but at a slower pace than 2022.

Meanwhile, in India, retail prices of petrol and diesel have remained unchanged for a while now. In the national capital, petrol sold for 96.72 a litre on Wednesday, while diesel was priced at 89.62 per litre.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 10 Aug 2022, 11:22 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie