Mumbai, 26 Jun (Commoditiescontrol): Crude oil prices fell in early Asian trade on Wednesday following an unexpected rise in U.S. stockpiles, raising concerns about weaker-than-expected demand in the world's top oil-consuming nation.
Brent crude futures dropped 19 cents, or 0.2%, to $84.82 a barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures declined by 11 cents, or 0.1%, to $80.72 per barrel.
The American Petroleum Institute (API) reported an increase of 914,000 barrels in U.S. crude oil stocks for the week ending June 21. This came as a surprise to market analysts, who had anticipated a decline of nearly 3 million barrels. Official data from the U.S. government on oil and fuel stockpiles is expected at 1430 GMT.
The previous session saw oil prices slump due to concerns over a weak start to the U.S. summer driving season. The API also reported a significant increase of 3.84 million barrels in U.S. gasoline stocks last week, contrary to analysts' expectations of a 1 million barrel decline.
Adding to the market's anxiety, easing U.S. consumer confidence this month has sparked worries about the broader economic outlook. Furthermore, a rising U.S. dollar, buoyed by hawkish comments from Federal Reserve officials, has put additional pressure on oil and other commodities.
The U.S. dollar index continued its slight gains on Wednesday after a 0.1% rise against a basket of currencies in the previous session. A stronger dollar typically makes dollar-denominated oil more expensive for investors holding other currencies, further dampening demand.
Analysts at ANZ Bank noted that the combination of increased stockpiles, lower consumer confidence, and a stronger dollar are key factors contributing to the recent decline in crude oil prices. As the market awaits official data, these factors will likely continue to influence oil prices in the near term.
(By Commoditiescontrol Bureau: 09820130172)
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