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Oil prices fell more than $3 on Thursday after higher US gasoline stockpiles stoked demand worries and returning energy supply from Libya and Russia eased supply concerns.
Brent crude futures dropped $3.80, or 3.6 per cent, to $103.12 a barrel by 0915 GMT after slipping 0.4 per cent in the previous session. US West Texas Intermediate crude futures fell $3.93, or 3.9 per cent, to $95.95 a barrel following a 1.9 per cent drop on Wednesday.
Oil futures trading volumes have been thin and prices volatile as traders have to square tighter supply because of the loss of Russian barrels following the country’s invasion of Ukraine, with recessionary worries about weaker energy demand. The European Central Bank is set to join other central banks in hiking rates, focusing on fighting runaway inflation rather than the economic downturn, which, in turn, can weigh on oil demand. An announcement is due at 1215 GMT.
European stocks, which often move in tandem with oil prices, also dipped ahead of the rate decision. US gasoline inventories rose 3.5 million barrels last week, government data showed on Wednesday, far exceeding analysts’ forecasts.
