Crude oil declines while US stockpiles rise

On Thursday morning, the official data indicated a rise in US stocks, which caused the price of crude oil futures to decline. Thursday saw a 0.22 percent decline in Brent oil futures to $84.28, and a 0.27 percent decline in August WTI (West Texas Intermediate) crude oil futures to $80.68. At the start of trade, July crude oil futures were trading at ₹6,743 on the Multi Commodity Exchange (MCX), down 0.91 percent from the previous close of ₹6,805.

Similarly, August futures were trading at ₹6,708 against the previous close of ₹6,761, down 0.78 percent. The US Energy Information Administration’s data for the week ending June 21 indicated a 3.6 million barrel increase in crude oil inventories. The market had projected a 3 million barrel drop during that time.

For the week ending June 21, the US saw a 2.7 million barrel increase in total motor petrol inventories. According to the Head of Commodities Strategy and Commodities Strategist at ING Commodities, US petrol stocks rose despite a decline in refinery activity. they indicated a decrease in the implied demand for petrol during that time.

Crude oil prices were, nevertheless, boosted by some geopolitical events. According to reports, concerns of a disruption in supply have been raised in the market by Ukraine’s recent drone assaults on Russian oil facilities. Russia is a significant oil supplier to the world market. Even with less refinery activity, grew in the US. indicating a decline in the estimated demand for petrol during that time.

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