World Oil Prices Various Amid US Inventory Data And Economic Concerns

Illustration. (Photo: Doc. Antara)

JAKARTA - Oil prices varied at the end of trading Wednesday (Thursday 6 April morning WIB), after a report showed US crude and fuel stock withdrawals outweigh expectations and markets under pressure on deteriorating economic prospects as well as OPEC+ manufacturer plans to reduce production.

As reported by Antara, West Texas Intermediate (WTI) crude futures for May delivery fell 10 cents, or 0.12 percent, to settle at 80.61 dollars a barrel on the New York Mercantile Exchange.

Brent crude futures for June delivery rose 5 cents, or 0.06 percent, to close at 84.99 dollars a barrel on the London ICE Futures Exchange.

The US Energy Information Agency (EIA) on Wednesday April 5 reported that the country's commercial crude inventories fell 3.7 million barrels over the week ended March 31. According to the EIA, the total motorcycle gasoline supply fell 4.1 million barrels last week, while the refined fuel stock fell 3.6 million barrels.

"The EIA report has no material impact on oil prices as traders are not prepared for major movement after the recent rally," Vladimir Zernov, an analyst on market information supplier FX Empire, said on Wednesday, April 5.

Earlier this week, oil prices posted a strong rise, fueled by a surprising decision by major oil producers to cut production.

"Maybe after this week's strong price rally, investors are a little careful to jump on a strong report," UBS analyst Giovanni Staunovo was quoted as saying by Reuters.

Prices jumped more than 6.0 percent on Monday April 3 after the Organization of the Petroleum Exporting Countries and its allies including Russia, collectively known as OPEC+, promised a voluntary reduction in production.

"OPEC+'s decision to voluntarily cut crude supplies from May onwards has shocked many, given that global crude oil balance is expected to be even tighter over the summer months, something that will definitely help keep crude oil prices supported," said Kpler crude oil analyst Johannes Rauball.

The data show that the cooling economic condition also burdens demand for crude and higher fuel.

The US Job Vacancies in February dropped to their lowest level in nearly two years, indicating that the labor market was cooling down.

"(Data) could be the first sign of a weakness in the US labor market and it's huge. Without it, (US Federal Reserve) would find it very difficult to argue that they are halting the tightening cycle," said Craig Erlam, senior market analyst at OANDA.

Traders will seek clues about a broader economic trend from non-farm payroll or US non-farm payroll data that will be released this week, as weak economic data from the US and China raise demand concerns.