Oil continues to fall as inventories rise

Oil prices fell for a second day after data showed U.S. crude inventories rose by the most since November, leaving indicators in a narrow range this year. Brent crude fell 1.4 percent on Wednesday to $81 a barrel, while U.S. crude approached $76. Inventories nationwide rose by a more-than-expected 12 million barrels last week, with inventories in Cushing, Oklahoma, a closely watched oil storage hub, also rising. Still, diesel and gasoline stocks fell amid refinery outages. “Markets were shocked by the magnitude of the increase in crude inventories. We expect the oil market to remain largely stable in 2024, with prices likely to remain at current levels for now,” said Han Zhong Liang, investment strategist at Standard Chartered. Crude has failed to break the $10 a barrel range this year due to tensions in the Middle East and efforts by OPEC+ to curb output, strong supplies from drilling companies and concerns that global demand growth will slow in 2024. On the negative side, expectations are that U.S. interest rates could remain high for longer as inflation continues. Later on Thursday, the International Energy Agency, which India is in talks to join, is due to release its monthly outlook. Earlier this week, IEA President Fatih Birol said global markets should remain “comfortable” this year as more supply enters the market and demand growth weakens.