Oil prices hovered near four-month lows on Wednesday on an expected supply boost later in the year when OPEC+ begins to unwind some output cuts, with markets also digesting U.S. jobs data and higher oil stocks.
The slide followed news from the Organization of the Petroleum Exporting Countries and its allies of plans to increase supply from the fourth quarter despite recent signs of weakening demand growth. “The intention has always been to slow roll the barrels back in and not to send the market into a tailspin with a supply surge,” Croft said.
Meanwhile, U.S. crude stocks by increased more than 4 million barrels in the week ended May 31, according to sources citing American Petroleum Institute figures.Gasoline stocks rose by more than 4 million barrels, twice the build expected by analysts.