Crude oil prices dropped by -4.87% to 5,919 due to OPEC+ production increases starting in October and concerns over sluggish demand in key markets like China and the US. OPEC+ plans to increase oil output by 180,000 barrels per day in October, but other cuts are expected to remain until 2025.
The Arabian Gulf Oil Company has resumed production of up to 120,000 barrels per day to meet domestic needs.
The Energy Information Administration reported a modest decrease in crude oil inventories by 0.846 million barrels for the week ending August 23, 2024, less than the expected 3-million-barrel reduction. Cushing, Oklahoma delivery hub stocks also declined by 668,000 barrels.
Gasoline inventories saw a significant reduction of 2.203 million barrels, surpassing expectations, while distillate fuel inventories unexpectedly increased by 0.275 million barrels.
