2023-04-20 20:06:00
© Archyde.com. An aerial view of oil tanks in Oklahoma in a photo from the Archyde.com archive
NEW YORK (Archyde.com) – It fell nearly $2 a barrel on Thursday, its lowest level since the end of March, on fears that a possible recession would slash demand for fuel and as U.S. gasoline inventories increased.
Crude futures fell 2.02, or 2.4 percent, to settle at $81.10. US West Texas Intermediate crude futures fell $1.87, or 2.4 percent, to $77.29 a barrel.
The two raw materials fell 2 percent on Wednesday and are currently at their lowest levels since the period before the OPEC + group announced an unexpected production cut.
“Ultimately, one of the big reasons for this decline is fear of a recession,” said Bob Yawger, executive director of energy futures at Mizuho.
The number of new applications for unemployment benefits in the United States increased modestly last week, indicating a gradual weakening in the labor market after the Federal Reserve (the US central bank) raised interest rates several times over a year.
The US Energy Information Administration said in a report on Wednesday that gasoline stocks jumped last week unexpectedly by 1.3 million barrels, to reach 223.5 million barrels.
Implicit demand for gasoline fell 3.9 percent from a year ago to 8.5 million barrels per day. US crude inventories fell by 4.6 million barrels, but analysts said the decline may be short-lived.
(Prepared by Muhammad Harfush and Mahmoud Abdel-Gawad for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)
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