Oil costs lengthen losses on rising U.S. gasoline inventories

By Yuka Obayashi

TOKYO (Reuters) – Oil costs fell on Thursday, extending losses from the day prior to this, pressured by giant builds in U.S. gasoline inventories final week, although issues over tighter provides from OPEC members and Russia capped the decline.

Brent crude futures fell 28 cents, or 0.4%, to $75.88 a barrel by 0125 GMT. U.S. West Texas Intermediate crude futures dropped 30 cents, or 0.4%, to $73.02.

Each benchmarks misplaced greater than 1% on Wednesday, as a stronger greenback and a bigger-than-expected rise in U.S. gasoline stockpiles weighed on costs.

Gasoline shares rose by 6.3 million barrels final week to 237.7 million barrels, the U.S. Power Info Administration stated on Wednesday. Analysts polled by Reuters had anticipated a 1.5 million-barrel construct.

Distillate stockpiles rose by 6.1 million barrels within the week to 128.9 million barrels, versus expectations for a 600,000-barrel rise.

However crude inventories fell by 959,000 barrels within the week, in contrast with analysts’ expectations for a 184,000-barrel draw.

“Elevated U.S. gasoline inventories prompted some promoting, however the draw back is proscribed as a result of winter demand season within the northern hemisphere,” stated Hiroyuki Kikukawa, president of NS Buying and selling, a unit of Nissan (OTC:NSANY) Securities.

Trying forward, China’s demand tendencies, the incoming U.S. administration’s power and commerce insurance policies, and its stance on the Russia-Ukraine struggle can be key focuses, he famous, including that merchants have been prone to chorus from taking giant positions till President-elect Donald Trump takes workplace on Jan. 20.

In the meantime, the Brent futures first-month contract premium to the six-month contract on Wednesday reached its widest since August 2024, reflecting issues of tightening provide and expectations of a revival in Chinese language demand.

Oil output from the Group of the Petroleum Exporting Nations fell in December after two months of improve, a Reuters survey confirmed. Area upkeep within the United Arab Emirates offset a Nigerian output hike and good points elsewhere within the group.

In Russia, oil output averaged 8.971 million barrels a day in December, under the nation’s goal, Bloomberg reported.