Oil fell more than $5/barrel on weak US gasoline demand.
Analysts added that US seasonal gasoline consumption is at the lowest in 22 years, citing the 30% spike in fuel prices
International benchmarks for crude oil nosedived more than $5/barrel on Wednesday, 4 October 2023 following weak fuel consumption data in the US and a bleak macroeconomic outlook.
Brent plunged $5.11 or 5.6% to settle at $85.81/barrel.
WTI fell $5.01 or 5.6% to close at $84.22/barrel.
According to data from the EIA, the finished motor gasoline inventories in the US – a proxy of demand health, fell to about 8 million barrels, marking the lowest levels since the beginning of this year. Analysts added that US seasonal gasoline consumption is at the lowest in 22 years, citing the 30% spike in fuel prices recently and the flooding following the Ophelia storm.