Oil plunges to 7-week low ahead of US Fed verdict; Brent dips to $83/bbl in oversold territory
₹6,622 per barrel on the multi commodity exchange (MCX). In other energy markets, U.S. diesel futures were on track to close at their lowest since July 2023, while U.S.
gasoline was on track to drop to a seven-week low. The U.S. Energy Information Administration (EIA) said energy firms added a surprising 7.3 million barrels of crude into stockpiles during the week ended April 26.
That compares with the 1.1 million barrel withdrawal analysts forecast in a Reuters poll and the 4.9 million barrel increase shown in data from the American Petroleum Institute (API), an industry group. "The crude build is a big one. At this time of year, we should be drawing down on crude oil as more barrels go through the refinery," Bob Yawger, director of energy futures at Mizuho, told Reuters.
In addition to the increase in crude stockpiles, EIA also reported a surprising 0.3-million barrel build in gasoline inventories. Analysts expected gasoline stocks would decline by 1.1 million barrels. In the Middle East, expectations that a ceasefire agreement between Israel and Hamas could be in sight have grown following a renewed push by the United States and Egypt, even as Israeli Prime Minister Benjamin Netanyahu has vowed to go ahead with a long-promised assault on Rafah.
"The crude market is weighed down by continued hopes for a ceasefire," Ole Hansen of Saxo Bank said. "In addition, stubborn U.S. inflation has further reduced rate cut expectations." U.S.
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