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Oil falls after U.S. gasoline inventories unexpectedly surge

Thursday,   08-Apr-2021   08:58 AM (IST)

Oil prices fell on Thursday after official figures showed a big increase in U.S. gasoline stocks, causing concerns about demand for crude weakening in the world's biggest consumer of the resource at a time when supplies around the world are rising. Brent crude LCOc1 eased 36 cents, or 0.6%, to $62.80 a barrel by 0136 GMT. U.S. oil CLc1 fell 38 cents, or 0.6%, to $59.39 a barrel. While crude stocks in the United States fell more than forecast by analysts, gasoline inventories jumped sharply, also against expectations, the Department of Energy said on Wednesday. Oil inventories dropped by 3.5 million barrels last week to nearly 502 million barrels, while gasoline stocks increased by 4 million barrels, against expectations of a decline, to just over 230 million barrels, as refiners ramped up production before the summer driving season. At the same time, supply is rising across the world with Russian output increasing from average March levels in the first few days of April, traders said. Higher economic growth would boost demand for oil and its products, helping to reduce stockpiles.