Oil prices decline on growth of US inventories

Global oil prices are declining on March 18 morning, increasing losses after the release of data on the next increase in stocks of crude in the US, published March 17, Report informs referring to Prime agency.

As of 8:10 (GMT +4), the price of May futures for North Sea Brent crude oil blend decreased by 0.65 percent to $67.56, the price of April futures for WTI oil - by 0.63 percent, to $64.21 per barrel.

Another increase in inventories in the US, which is the biggest consumer of this crude in the world, continues to exert pressure on oil prices on March 18. Official data released on March 17 showed that stocks rose 2.4 million barrels over the past week to 500.8 million barrels. At the same time, the indicator exceeded the 500 million mark for the first time since the beginning of December.

Investors also continue to be concerned about the coronavirus situation and its impact on demand. Several European countries have already stopped using the AstraZeneca COVID vaccine due to concerns about potential side effects. Meanwhile, Germany has seen an increase in coronavirus cases. Italy plans to tighten quarantine measures for Easter, while France is imposing tougher restrictions.

“Oil could trade in a range for the moment,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. While the rise in US crude stockpiles probably soured near-term sentiment, “given the pace of global vaccination and economic recovery, we remain bullish on the energy complex,” said Lee.