Oil prices fall further on surprise US inventory build, rate jitters
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Oil prices fell in Asian trade on Wednesday as industry data showed an unexpected build in U.S. inventories, while persistent concerns over high U.S. interest rates also kept sentiment subdued. Brent oil futures expiring in July sank 0.6% to $82.40 a barrel, while West Texas Intermediate crude futures fell 0.7% to $78.13 a barrel. Data from the American Petroleum Institute (API) showed that U.S. oil inventories grew by 2.5 million barrels in the week to May 17, beating expectations for a draw of 3.1 million barrels. Gasoline stockpiles also grew by 2.1 million barrels, while distillate inventories fell by 320,000 barrels. The unexpected build in inventories raised concerns over sluggish U.S. oil demand. Traders were also fearful that pressure from sticky inflation and high interest rates would limit strength in demand over the coming months. Federal Reserve officials warned that the central bank needed more confidence that inflation was falling before it could begin cutting interest rates. Minutes of the Fed's late-April meeting are due later on Wednesday, and are expected to offer more cues on the central bank's plans to cut rates. Beyond the Fed, focus is also on a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+) in early-June, for any signs that the cartel will extend its current run of production cuts.

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https://www.investing.com/news/commodities-news/oil-prices-fall-further-on-surprise-us-inventory-build-rate-jitters-3451185