Crude oil fell despite the US producing record amounts of it

Crude oil fell -1.29% to settle at 6424, mostly due to record-high output in the United States despite encouraging signs of demand from China. The petroleum output increase estimate for 2023 was revised by the U.S. Energy Information Administration to 12.9 million bpd, which is somewhat less than earlier projections.

Citing unanticipated production growth in the United States and Brazil, the International Energy Agency and OPEC+ increased their estimates for the growth of oil demand for the year. OPEC’s evaluation of robust growth patterns and sound fundamentals was, nevertheless, at odds with the IEA’s claim.

After a notable 11.9 million barrel increase the previous week, crude oil stockpiles in the United States rose by 1.335 million barrels. Despite coming in somewhat short of market forecasts, this increase helps to shape the mood of the market as a whole.

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