US Brent & WTI plunge nearly 3%
US oil inventories rose
OPEC maintains current production policy
Crude oil prices traded lower on Thursday after plunging nearly 3% during the previous trading session due to gloomy reports on US oil supplies.
Data from the Energy Information Administration (EIA) showed US oil inventories rose to their highest level since June 2021 last week, by 4.1 million barrels.
It was the sixth consecutive weekly increase as refining consumption fell and net imports rose.
This indirectly indicates a continued decline in demand for crude oil or fuel in the country.
As a result, crude oil prices slid lower, with Brent trading down 2.89% while US WTI fell 2.96% on Wednesday.
Prices then stabilized for Brent traded around $83 per barrel and US WTI at $77 per barrel in today's Asian session following the Federal Reserve (Fed) policy decision to invest in the US dollar.
The low value of the US dollar makes oil cheaper for holders of other currencies, thus increasing demand for the commodity.
Meanwhile, the decision of OPEC and its allies including Russia (OPEC+) to maintain its current production policy also added pressure to the crude oil trade.
