Crude stocks in the US dipped more than analysts’ forecast. Credit: Kevin Harris / Unsplash.

Crude oil prices dipped after the official data revealed an unexpected surge in the US gasoline stocks, raising concerns over waning demand.

Brent crude fell by $0.36, or 0.6%, to reach $62.80 a barrel while the US oil fell $0.38, or 0.6%, to reach $59.39 a barrel, reported Reuters.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The US Department of Energy said that the country’s crude stocks fell more than analysts’ forecast while the gasoline inventories in the country witnessed a sharp rise.

Last week, oil inventories dropped to nearly 502 million barrels by 3.5 million barrels whereas the gasoline stocks surged by four million barrels to reach over 230 million barrels as production was increased by the refiners prior to the summer season.

Mizuho Securities energy futures director Bob Yawger was cited by the news agency as saying: “Refiners may want to pull back on the run rate a bit to keep gasoline storage from challenging the all-time record.”

Meanwhile, global supply is also rising supported by Russia’s increased production output in the first few days of April from average levels in March, traders said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Currently, talks are underway between the US and other powers on reviving the nuclear deal signed in 2015 that almost stopped oil supply to the market from Iran.

Upon lifting the sanctions, Iran is expected to add production to global supplies.

However, massive public spending to help contain the Covid-19 pandemic might result in 6% global growth in 2021, the International Monetary Fund said earlier this week.

Demand for oil and its products is expected to boost with higher economic growth, supporting reduced stockpiles.