Oil prices edged lower on Thursday following a surprise increase in U.S. gasoline inventories. Investors are also focused on the upcoming OPEC+ meeting this weekend.
Brent crude futures fell 14 cents, or 0.2%, to $72.69 per barrel at 0401 GMT. U.S. West Texas Intermediate crude futures dropped 14 cents as well, settling at $68.58 a barrel.
The decline comes after the U.S. Energy Information Administration (EIA) reported a 3.3 million-barrel increase in gasoline stocks for the week ending Nov. 22. Analysts had expected a small drawdown in inventories as holiday travel picks up.
The rise in gasoline supplies counters previous expectations, dampening concerns about tight fuel supply during the holiday season.
Market strategist Yeap Jun Rong noted that oil’s near-term bearish momentum is likely to continue. He pointed to fading risks of supply disruptions in the Middle East and weaker-than-expected fuel demand growth in key markets like the U.S. and China.
In the U.S., gasoline demand growth has slowed in recent months, adding to the pressure on oil prices. The Chinese market is also showing signs of weaker demand, which has weighed on global oil markets this year.
Despite the ongoing demand slowdown, supply cuts from OPEC+ have helped limit larger losses in oil prices. The group, which includes OPEC members and Russia, is set to meet this weekend to discuss its future oil output strategy.
With the U.S. Thanksgiving holiday underway, trading is expected to be light. The market’s focus will remain on OPEC+’s decisions on supply cuts, which could influence oil prices in the coming weeks.
