28.08.202501:37:13UTC+00Oil Falls on Soft US Demand Outlook

WTI crude futures declined to roughly $63.8 per barrel on Thursday, reversing a previous 1% gain as investors weighed the decreasing demand for fuel in the US with the summer driving season nearing its conclusion. The market also closely watched potential changes in supply dynamics due to steep US tariffs on Indian oil imports. US crude inventories decreased by 2.39 million barrels to 418.3 million, exceeding expectations, while Cushing's stocks fell by 838,000 barrels, indicating strong demand as Labor Day approaches. However, analysts pointed out that this holiday often marks the end of peak driving season and signals a drop in consumption. Additionally, traders observed India’s reaction to US demands for reducing Russian oil imports following increased tariffs, although it is expected that India will continue its purchases in the short term, thus limiting any global impact. The decline in prices was somewhat cushioned by ongoing hostilities between Russia and Ukraine affecting energy infrastructure and hopes for a possible US rate cut to stimulate demand.