Oil prices continue their downward trend, marking a sixth consecutive day of losses.
This recent slump is tied to growing stockpiles in the U.S., indicating a mismatch between supply and demand.
With the OPEC+ planning to boost supply despite these conditions, the market remains on edge. Investors are closely watching for the upcoming official stock data, which could provide further insights into future demand trends.
Oil Price Drop
Oil prices have continued their decline for the sixth consecutive day, influenced by significant increases in U.S. oil and fuel stocks.
In early trading on Wednesday in Asia, Brent crude and West Texas Intermediate crude experienced slight losses following a report on rising stockpiles.
Recent Declines
According to Reuters, Brent crude futures dipped by 14 cents to $77.38 a barrel, while West Texas Intermediate crude fell 18 cents to $73.07 a barrel.
This downturn follows a nearly $1 drop on Tuesday and a $3 fall on Monday, exacerbated by OPEC+'s recent decision to boost supply starting in October, despite weakening demand.
Surprising Stockpiles
The American Petroleum Institute (API) reported an unexpected rise in U.S. crude oil, gasoline, and distillate stocks last week, indicating that supply is exceeding demand.
Specifically, crude inventories increased by over 4 million barrels, far exceeding the forecasted 2.3 million barrel drop. Independent energy analyst Tim Evans called the rise a "clear bearish surprise."
Gasoline Stocks Surge
Additionally, gasoline stocks rose by over 4 million barrels, significantly above the 2 million barrels analysts expected.
Awaiting Official Data
Investors are now awaiting the official stockpile data from the U.S. Energy Information Administration, this week.
The outcome could heavily impact investor sentiment regarding future oil demand.
