Oil prices decrease due to demand concerns while markets anticipate U.S. crude stockpiles data

Oil prices dipped on Thursday as investors awaited the latest U.S. crude oil stockpiles data, with concerns over resilient U.S. economic activity potentially impacting demand.

Brent futures slipped by 0.1% to $83.52 a barrel, while U.S. West Texas Intermediate (WIT) crude was down by 0.04% to $79.19 at 0046 GMT.

According to market sources citing American Petroleum Institute figures, U.S. crude oil and gasoline inventories decreased last week, while distillates saw an increase. Crude stocks were reported to be down by 6.49 million barrels, gasoline inventories down by 452,000 barrels, and distillates up by 2.045 million barrels.

Analysts had projected U.S. energy firms to withdraw 1.9 million barrels of crude from storage, while stocking 0.4 million barrels of distillates and 1 million barrels of gasoline.

The U.S. Energy Information Administration (EIA) is set to release its data later on Thursday, with ANZ Research noting that any indication of strong demand in the report could support crude oil prices.

Rising global oil inventories through April due to soft fuel demand may lead OPEC+ producers to maintain supply cuts when they meet on June 2, according to delegates and analysts.

The Federal Reserve’s expected decision to keep interest rates higher for longer has put pressure on oil markets, with higher borrowing costs potentially dampening crude demand and prices. The Fed is now anticipated to cut rates in September at the earliest, compared to the market’s initial expectation of a June easing cycle.