Oil prices have dropped following reports of a significant increase in crude inventories in the US, the world's largest oil consumer, according to Reuters.
Notably, May futures for Brent crude decreased by $0.74, closing at $85.51 per barrel. The May contract, set to expire on March 28, saw the June contract, which has more active trading, fall by $0.68 to $84.95 a barrel.
Similarly, May futures for American West Texas Intermediate (WTI) crude experienced a decrease of $0.64, settling at $80.98.
This week, prices dipped after reaching their highest point since last October and are currently about 3% higher than their average closing in the first week of March.
Jun Rong, a market strategist at IG, attributed the fall in prices to the steep rise in US oil inventories and the anticipation that OPEC+ might not adjust its production policy in the upcoming week.
According to sources citing the American Petroleum Institute, U.S. crude oil inventories saw a significant increase of 9.3 million barrels for the week ending March 22. Distillate stocks also rose by 531,000 barrels, while gasoline inventories decreased by 4.4 million barrels.
The report suggests that OPEC+, the oil-producing countries' consortium, is likely to maintain its current production policy until the comprehensive ministerial meeting in June of this year.
