Business
Crude Oil Prices Slide on Weak Demand Concerns, Rising US Stocks
Global crude oil prices declined as investors weighed expectations of weaker global demand and a sharp rise in US crude inventories, with Brent and West Texas Intermediate both falling nearly 2 per cent in intra-day trade.
Global crude oil prices declined today as investors assessed the possibility of weaker global oil demand this year along with a sharp increase in US crude oil inventories.
Brent crude fell 1.8 per cent to 87 US dollars and 41 cents per barrel in intra-day trade. Meanwhile, West Texas Intermediate (WTI) crude declined 1.9 per cent to 81 US dollars and 65 cents per barrel, when reports last came in.
The decline in oil prices came after fresh US inventory data pointed to a substantial build-up in crude stocks. According to data released by the US Energy Information Administration (EIA), commercial crude oil inventories increased by 17.4 million barrels to 424.4 million barrels in the week ended August 7.
The latest weekly increase represented the largest rise in US crude inventories since January 2023, adding to concerns about the balance between oil supply and demand.
Investors are also assessing prospects for weaker global demand during the year, with expectations of softer consumption contributing to downward pressure on international crude benchmarks.
The combination of higher US inventories and concerns over global demand has therefore weighed on crude oil prices during the latest trading session.
