FX.co ★ Oil Slips on Oversupply Fears

WTI crude oil futures declined towards $62.50 per barrel on Thursday, marking a continuing downturn from the previous day due to renewed apprehensions over an oversupply situation. This concern arose after an unexpected increase in US crude oil inventories. Data from the Energy Information Administration (EIA) revealed a 3.454 million barrel rise in crude stockpiles last week, corroborating industry reports that indicated a substantial 4.3 million barrel growth. In contrast, gasoline and distillate inventories fell by 1.022 million and 3.155 million barrels, respectively, just before the onset of the summer driving season. Meanwhile, OPEC reduced its projection for oil supply growth from the US and other non-OPEC+ producers for this year, revising it downwards to 800,000 barrels per day from an earlier estimate of 900,000 barrels per day. Despite these revisions, OPEC's ongoing plans to further boost output continued to exert downward pressure on oil prices.