Oil is Falling as Demand Concerns Re-Emerge

Oil prices fell Thursday, September 17th, after rising strongly in the previous two sessions as concerns about weak demand re-emerged as producers in the Gulf of Mexico prepare to resume production after Hurricane Sally.

Brent crude futures fell 67 cents, or 1.6%, to $ 41.55 a barrel by 06:28 GMT, after rising 4.2% on Wednesday.

US West Texas Intermediate crude futures fell 70 cents, or 1.7%, to $ 39.46 a barrel, after jumping 4.9% on Wednesday.

Prices also fell due to a more than expected increase in US distillate stocks, which include diesel and heating oil, raising concerns about fuel demand in the world’s largest economy and consumer of fuel.

Yesterday, Wednesday, US Energy Information Administration data revealed that distillate stocks increased by 3.5 million barrels last week. The administration stated that the weekly demand for fuel decreased to 2.81 million barrels per day, down 27.2% compared to the same period last year.