Oil drops to lowest level in over 45 days; Brent below $84

Oil drilling rigs

Oil prices deepened their losses today, May 1, as geopolitical tensions in the Middle East region eased and following a significant rise in US crude inventories.

Brent crude oil for July delivery fell 3.3%, or $2.89, to close at $83.44 per barrel, recording the lowest close since March 13.

WTI crude futures for June delivery dropped 3.6%, or $2.93, to $79 per barrel, recording the lowest level since March 13 as well.

The dollar index, which measures its value against a basket of six major currencies, fell by 0.20% to 106.02 points, at 10:32 pm Makkah time.

Energy Information Administration data released today showed that crude inventories in the US rose by 7.3 million barrels last week, compared to analysts’ expectations that indicated a decrease of 1.5 million barrels.

Meanwhile, a Reuters survey showed that OPEC's oil production decreased during April to 26.49 million barrels per day, by 100,000 barrels per day below the revised production levels for March.