<\/p>\n\n\n\n
Oil prices declined on Thursday as the stronger U.S. dollar and expectations of prolonged high interest rates raised concerns about potential demand reduction.<\/p>\n\n\n\n
Brent futures dropped 0.3% to $83.34 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.3% to $79.00. Both benchmarks are on track for monthly losses, with Brent down over 5% and WTI down over 3% from last month.<\/p>\n\n\n\n
Market analysts attribute the downward pressure on oil prices to a broader risk-off sentiment, which outweighs the positive impact of a larger-than-expected drawdown in U.S. crude inventories revealed by recent API data.<\/p>\n\n\n\n
The American Petroleum Institute (API) figures for the week ending May 24 indicated a decline of 6.49 million barrels in crude stocks, exceeding analyst projections of a 1.9 million barrel draw. This suggests a pick-up in U.S. fuel demand due to the summer travel season, which typically starts with the Memorial Day weekend.<\/p>\n\n\n\n
Official inventory data from the U.S. Energy Information Administration (EIA) is expected later today.<\/p>\n\n\n\n
The rising global oil inventories through April, caused by soft fuel demand, may strengthen the case for OPEC+ producers to maintain their current supply cuts when they meet on June 2nd. Analysts believe that OPEC+ members may extend these cuts until the end of the third quarter to support prices.<\/p>\n\n\n\n
Oil markets have been under pressure due to expectations that the Federal Reserve will keep interest rates elevated for a longer duration. Brent crude reached its lowest level in over three months on May 23rd.<\/p>\n\n\n\n
A recent Fed survey indicated that while U.S. economic activity continued to expand in April and May, businesses grew more pessimistic about the future, and inflation increased moderately.<\/p>\n\n\n\n
Higher borrowing costs tend to constrain funds and consumption, negatively impacting crude demand and prices. The earliest anticipated Federal Reserve rate cut is now September, a shift from the June start that markets had previously expected.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices declined on Thursday as the stronger U.S. dollar and expectations of prolonged high interest rates raised concerns about potential demand reduction. Brent futures dropped 0.3% to $83.34 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.3% to $79.00. Both benchmarks are on track for monthly losses, with Brent down over 5% …<\/p>\n","protected":false},"author":9,"featured_media":53340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,36],"tags":[9641,6846,8137],"class_list":["post-101863","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates","tag-eia-data","tag-oil","tag-oil-demand"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=101863"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101863\/revisions"}],"predecessor-version":[{"id":101864,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101863\/revisions\/101864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53340"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=101863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=101863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=101863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}