The price of crude oil continued to fall today after the Energy Information Administration reported a further increase in inventories to 2.2 million barrels for the week ending June 7. The barrel construction of gasoline supplies also led to lower prices.
Last week, gasoline inventories rose by 800,000 barrels, according to the EIA, although the driving season was probably gaining momentum. Average gasoline production last week was 10.3 million barrels a day, compared to 10 million barrels a day earlier.
Average distillate fuel production during the period was 5.2 million barrels, while inventories decreased by 1 million barrels. This compares to a notable increase of 4.6 million barrels a week earlier.
The inventory report is in the midst of falling oil prices as the market pauses for OPEC +'s decision to cut oil production, namely whether to extend the cuts until the end of the year.
Demand is still uncertain, as the US-Chinese trade war continues to escalate. The latest update came from President Trump, who threatened to impose $ 300 billion in additional Chinese goods if Chinese President Xi Jinping does not attend a scheduled bilateral meeting during China's G20 summit this month.
A day before, the EIA published its latest short-term energy outlook, adjusting its average price projections to recent price developments. Now, the agency expects Brent crude to cost $ 67 a barrel on average, compared to $ 69 a barrel forecasted by 1
At the time of writing, Brent crude was trading at $ 61.06 a barrel, while West Texas Intermediate was trading at $ 52.07 a barrel, both down more than one percentage point from today's trading opening.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com: