Oil prices continued downward on Thursday, pressured by an unexpected rise in U.S. fuel inventories. The latest data from the Energy Information Administration showed an increase in gasoline and distillate stocks, sparking concerns about weakening demand in the world’s largest oil consumer.
The inventory build surprised markets, overshadowing earlier optimism about supply cuts by OPEC and its allies. The rise in fuel stockpiles suggests a potential slowdown in consumer activity, raising questions about the broader economic outlook and energy demand recovery.
Adding to the pressure, analysts highlighted slowing industrial activity in key global economies, further dampening sentiment. The prospect of additional interest rate hikes by central banks to combat inflation has also weighed on oil prices, compounding fears of reduced energy consumption in the coming months.
With the market looking ahead, traders are eyeing upcoming economic data and updates from OPEC for clues on future price direction. Unless demand shows clear signs of recovery, oil prices are likely to remain under pressure, driven by rising inventories and lingering macroeconomic uncertainties.
