Oil Prices Fall Amid Worsening US Demand Concerns
Oil prices fell during Thursday's trading on July 3, relinquishing some of their previous gains, amid market concerns over weak US demand and rising inventories.
The latest data from the US Energy Information Administration revealed a surprising increase in weekly crude oil inventories by 3.8 million barrels, reaching 419 million barrels, contrary to analysts' expectations of a 1.8 million barrel decrease according to Reuters' survey.
A decrease in gasoline demand to 8.6 million barrels per day also raised additional concerns, especially with the onset of the summer driving season, which typically sees peak consumption.
This decline comes despite the previous session's increase in crude prices due to Iran suspending its cooperation with the International Atomic Energy Agency, reigniting fears of renewed tensions over the Iranian nuclear program.
On the other hand, the new trade agreement between the United States and Vietnam, which imposes a 20% tariff on many Vietnamese exports, has helped boost stability sentiments in global markets, potentially supporting future oil demand.
While traders await the monthly US jobs report to anticipate interest rate trends, Brent crude recorded a 0.7% decrease to $68.61 per barrel, while US crude fell by the same percentage to $66.99 per barrel.
