Oil drops on demand worries after US gasoline inventories swell

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Key Points

HOUSTON (Reuters) -Oil prices fell by 2.5% on Wednesday, as a bigger-than-expected rise in U.S. gasoline inventories worried markets about demand and outweighed a draw in crude stocks...

U.S. gasoline stocks rose by 5.4 million barrels last week, the Energy Information Administration said, more than quintuple the 1 million-barrel rise that analysts had expected..

OPEC+, the Organization of the Petroleum Exporting Countries and allies such as Russia agreed late last week on voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024..

On Wednesday, Russian president Vladimir Putin traveled to the United Arab Emirates and Saudi Arabia to meet with the UAEs President Sheikh Mohammed Bin Zayed Al Nahyan and Saudi Crown Prince Mohammed bin Salman..

Clearly traders were already feeling bearish and now oil is back at a five-month low and heading for a fifth day of losses, OANDA analyst Craig Erlam said.. (Reporting by Arathy Somasekhar and Georgina McCartney in Houston, Robert Harvey in London, Andrew Hayley in Beijing and Trixie Yap in Singapore, Editing by Louise Heavens, Elaine Hardcastle and David Gregorio)..

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