Oil prices dropped for the second day amid weak US fuel demand

International benchmarks for crude oil fell for the second straight session on Thursday, 30 May 2024 despite the weekly report from the EIA showing the largest drawdown in the US commercial crude stockpile in five weeks. Eyes are on the unexpected increase in gasoline stocks, underlining the weakness in demand.

The US Energy Information Administration (EIA) reported a 2% decline in gasoline demand from the previous week, dropping to 9.15 million bpd. This decline was surprising given the anticipated boost from the Memorial Day holiday on 27 May 2024, which traditionally marks the start of the summer driving season.

Adding to the downward pressure on oil prices, investor sentiment has been dampened by the likelihood of delayed monetary easing in the United States and Europe. Financial markets are currently dominated by "fear trading" as investors await Friday's US consumer price index data.

Brent futures decreased $1.74 or 2.1%, settling at $81.86/barrel.

WTI fell $1.32 or 1.7%, settling at $77.91/barrel.