Oil fall as US crude inventories rise

Oil drilling rigs

Oil prices declined today, June 13, after weekly data on crude inventories in the United States showed an unexpected rise and as the Federal Reserve fixed interest rates, which led to increased fears of a slowdown in American demand.

Brent crude was trading down 0.27% at $82.38 per barrel at 08:02 am Makkah time.

West Texas Intermediate (WTI) crude declined 0.27% to $78.29 per barrel.

According to the US Energy Information Administration, US oil inventories rose by 3.7 million barrels last week—an indication of a slowdown in demand—contrary to the expectations of a decrease of 1.2 million barrels.

Meanwhile, the Federal Reserve maintained interest rates within a range of 5.25% and 5.50% at its meeting that ended on June 12. Tightening financing costs usually slow economic activity and then aggregate demand, including energy demand.