NEW YORK, May 13 (NNN-AGENCIES) – Oil prices settled mixed yesterday, as market participants weighed risks, both on the supply and the demand sides.
The West Texas Intermediate for June delivery, added 42 cents, or 0.4 percent, to settle at 106.13 U.S. dollars a barrel, on the New York Mercantile Exchange. Brent crude for July delivery, decreased six cents, or nearly 0.1 percent, to close at 107.45 dollars a barrel, on the London ICE Futures Exchange.
The U.S. oil benchmark eked out a gain despite data showing a hefty rise in U.S. crude stockpiles.
The U.S. Energy Information Administration, reported Wednesday that, the nation’s crude inventories increased by 8.5 million barrels during the week ending May 6. Analysts, surveyed by S&P Global Commodity Insights, had forecast a fall of 1.8 million barrels.
Concerns over tight supplies remain on the market, as the European Union mulled an oil embargo against Russia. Traders also worried about a slowdown in demand growth.
In its monthly report released yesterday, the Organisation of the Petroleum Exporting Countries, revised down its forecast for world oil demand growth in 2022, citing impacts from geopolitical tensions and the COVID-19 pandemic.
Analysts cautioned that, investors need to be prepared for more volatility.
“Amid the widening supply and demand uncertainties, oil market volatility remains rife,” the Paris-based International Energy Agency said, yesterday.– NNN-AGENCIES