Oil falls on US demand worries, interest rate fears

Oil prices experienced a decline on Thursday following a larger-than-expected build in U.S. crude stockpiles, raising concerns about sluggish demand.

Additionally, indications that U.S. interest rates may remain elevated further added to downward pressure on oil prices. Brent crude futures for April retreated by 43 cents, or 0.5%, to $83.25 a barrel by 0830 GMT, following a marginal increase of 3 cents in the previous session. With the April contract expiring on Thursday, the more active May contract also saw a decrease of 33 cents, settling at $81.82.

According to the Energy Information Administration, U.S. crude oil stockpiles witnessed a rise, while gasoline and distillate inventories declined last week. Refiners operated at below seasonal levels due to planned and unplanned outages, contributing to the increase in crude inventories.

Market sentiment was further dampened by the anticipation of delayed U.S. interest rate cuts, which could potentially undermine oil demand.

Source: Reuters