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Oil prices fall as summer fuel demand weakens in the US
Oil prices fell on Wednesday, June 9th after US inventory data showed a jump in gasoline stocks due to weak fuel demand after the US holiday which usually marks the start of the peak summer driving season.
Brent crude futures fell 23 cents, or 0.3%, to $71.99 a barrel, having earlier touched $72.83, the highest since May 20.
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US West Texas Intermediate crude futures fell 43 cents, or 0.6%, to $69.62 a barrel, after hitting $70.62, the highest level since October 17, 2018.
Despite a five million barrel drop in crude stocks last week, stocks of gasoline and other fuels rose sharply due to weak demand, according to data from the US Energy Information Administration for the week that included a weekend made longer due to Memorial Day.
The supply of products decreased to 17.7 million barrels per day, compared to 19.1 million barrels in the previous week.
Analysts also noted that bad weather along the US East Coast may have reduced consumption after a period in which a buildup of gasoline abnormally supported demand during the shutdown of the Colonial pipeline last month due to a ransom attack.
On Tuesday, the Energy Information Administration expected US fuel consumption to grow this year to 1.48 million barrels per day, up from a previous forecast of 1.39 million barrels per day.
