Oil Falls as The Start of The Flight Season in America Fails to Increase Fuel Demand

Brent crude futures fell 36 cents, or 0.5%, to $71.86 a barrel, while US oil futures fell 35 cents, or 0.5%, to $69.61 a barrel.

The US Energy Information Administration said on Wednesday that US crude oil stocks, which include strategic petroleum reserves, fell for the eleventh consecutive week as refineries boosted production, but fuel stocks increased sharply due to weak consumer demand.

Crude stocks, excluding strategic petroleum reserves, fell 5.2 million barrels in the week ending June 4 to 474 million barrels, the third consecutive weekly decline. But fuel stocks rose strongly.

In another development that put pressure on prices, an oil source at the Sidra oil export terminal said that the Libyan Waha Oil Company aims to return to normal production operations today, Thursday, after repairing a leak in a pipeline that caused the company’s oil production to drop by half.

In India, the world’s third-largest oil consumer, demand for fuel fell in May to its lowest level since August last year, as the second wave of Covid-19 cases disrupted transportation and reduced economic activity in the country.