Black commodities moved gloomily in Wednesday’s trading session amid growing concerns that the Biden administration will take steps to cut oil prices.
Entering the European session, Brent crude futures traded lower at around $ 81.60 a barrel, while US WTI traded weakly at $ 78.95 a barrel.
The fall in U.S. gasoline stocks has raised market concerns that the Biden administration may use its emergency reserves to offset rising gasoline prices.
In the context of demand and supply, when the supply of fuel stocks declines and demand increases, it will force producers to raise prices to stabilize the market.
However, significant price increases can lead to high inflation and this is not good for economic growth.
Meanwhile, data from the American Petroleum Institute (API) also saw U.S. crude oil supplies increase by 655,000 barrels last week.
Although the readings recorded were better than expected, crude oil failed to capitalize on it as it was also affected by the strengthening US dollar which made the commodity more expensive to holders of other major currencies.
