Oil prices slumped again on Thursday after U.S. crude oil inventory data showed a surge in gasoline stocks signaling lower -than -expected fuel demand in the early summer.
In the Asian session, Brent crude futures fell around $ 71.70 a barrel, down from the highest level since May 2019 at $ 72.85 a barrel it had reached in the previous session.
While US WTI trading was trading lower at $ 69.43 a barrel, slipping from its highest level since October 2018 which touched at $ 70.55 a barrel.
American gasoline inventories increased the most since April 2020 last week, with an increase of 7.05 million barrels, according to official data by the Energy Information Administration (EIA). Distillery stocks, including diesel also showed an increase beyond expectations.
While the supply of crude oil was reported to have decreased significantly by 5.2 million barrels, but this was only due to increased fuel production following the surge in refining activities.
Although the data reading is not as expected, but the market is still optimistic that demand for fuel will increase even stronger as the summer in the US peaks.
