Oil slips 1.5% after US inventories rise

Oil drilling rigs

Oil prices closed lower today, June 14, as investors assessed US inventory data and the prospects for US monetary policy.

Data from the Energy Information Administration showed that oil inventories increased by 7.9 million barrels during the past week, contrary to estimates that indicated a decrease of about 510,000 barrels.

The Fed fixed the monetary policy range at 5% and 5.25%, after increasing it over 10 consecutive meetings, indicating the possibility of two more rate hikes this year by 25 basis points.

Meanwhile, the International Energy Agency (IEA) raised its forecast on oil demand growth for this year by 200,000 barrels per day to 2.4 million barrels per day. This increases the expected total to 102.3 million barrels per day.

The IEA indicated that the energy crisis has accelerated the pace of countries and industries shifting away from fossil fuels, which means reducing growth to 860,000 barrels per day next year and only 400,000 barrels per day in 2028, when total demand is expected to reach 105.7 million barrels per day.

Brent crude futures for August delivery fell by 1.45%, or $1.09, to $73.20 a barrel, after touching $75.49 during the session.

WTI crude for July delivery fell by 1.7%, or $1.15, to record $68.27 a barrel, after touching $70.49 during the session.