US crude stocks fell more than expected last week as refining output rose and exports surged, the Energy Information Administration. Brent crude oil futures fell by 28 cents, or 0.4%, to $68.68 a barrel by 0939 GMT, and West Texas Intermediate (WTI) US crude futures lost 31 cents, or 0.5%, to $65.32 a barrel.
Oil prices slipped after earlier gains on Thursday, weighed by rising Covid-19 infections in India and elsewhere, and despite a much sharper than expected fall in US crude inventories. Both benchmarks hit their highest since mid-March on Wednesday, before retreating to end little changed following two days of gains.
The record numbers of new infections in India have been making the headlines and fueling fears that demand may recover more slowly .At the same time, easing restrictions in Europe and falling US crude inventories lent prices support.
As the rollout of vaccines continues and a pent-up summer driving season continues to manifest, this trend should accelerate, keeping demand for motor fuels robust and boosting market confidence in the recovery story.
This fall was chiefly due to “a massive fall in net crude oil imports to around 1.3 million barrels per day, their lowest level in at least 40 years. Gasoline demand in the world’s largest oil importer has proved disappointing, with stocks rising slightly last week.
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