West TX Oil Drops Below $59 Despite U.S. Stockpile Drop

Oil fell about 3 percent Wednesday as traders and investors ignored a fifth straight weekly decline in U.S. crude stockpiles to focus instead on a big build in distillates, including diesel, as the peak season for U.S. road travel got under way.

U.S. crude futures closed down $1.62, or 2.64 percent, at $59.64 a barrel. Front-month Brent futures fell $1.61, or 2.4 percent, to $63.90 a barrel.

Glum sentiment ahead of Friday’s meeting of the Organization of the Petroleum Exporting Countries also weighed on the market. OPEC, which pumps more than a third of the world’s oil, is expected to reject any calls for output cuts and it instead continue to produce about 2 million barrels per day above demand.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.