Oil slips as traders mull surprise increase in US stocks

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‘Demand growth is starting to moderate and the picture for the latter half of the year is looking increasingly bleak,’ says Vanda Insights

Oil prices fell on Thursday, after rising sharply in the first half of the week, as traders weighed a larger-than-expected build in US oil stocks against tightening global supply.

Both contracts on Wednesday had shrugged off a large build in US crude inventories to end the trading session about 4% higher. However, the oil complex is heavily focused on the short term and fears of supply shortages are crowding out that view, she said. The probability of a EU ban on Russian oil being agreed may be almost zero, but no-one will be able or wanting to say that clearly, Hari said.At the same time, major global trading houses are also planning to curtail crude and fuel purchases from Russia's state-controlled oil companies in May, Reuters reported on Wednesday.

 

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