Crude Oil Market : After an industry report revealed that US crude inventories increased by 10.5 million barrels last week, which was significantly higher than market forecasts of a 321,000 barrel increase,
WTI crude oil prices fell below $79 per barrel on Wednesday, causing a slide that lasted for the second consecutive session. Investors also looked at a report on US inflation that was higher than expected, indicating that the Federal Reserve will need to raise interest rates.
After the US government announced plans to release an additional 26 million barrels of oil from strategic reserves on Tuesday, oil prices fell. After the EIA stated that it anticipated record March production from the seven largest US shale basins, supply concerns also subsided.
OPEC has increased China’s demand in order to maintain a price floor in its 2023 oil demand forecast by 100,000 barrels per day. In addition, the cartel reduced its supply outlook and stated that it will adhere to production quotas established late last year for the remainder of 2023.
