Oil falls amid demand concerns

Oil drilling rigs

Oil prices declined today, March 8, amid demand concerns and despite the drop in US crude inventories.

Brent crude fell 0.7% to close at $82.66 a barrel. West Texas Intermediate (WTI) crude lost 1.2% to reach $76.66 a barrel.

OPEC Secretary-General Haitham Al-Ghais said that the slowdown in oil demand in Europe and the United States is a source of concern, despite the strong growth in Asia.

Investors' concerns about the outlook for the US economy also persist, after the Federal Reserve Chairman Jerome Powell repeatedly signalled the possibility of a higher-than-expected interest rate hike.

Meanwhile, Barclays cut its forecast for the average price of Brent crude to $92 this year, compared to the previous forecast of $98.

Data from the Energy Information Administration showed that oil inventories in the US fell by 1.7 million barrels in the week ended March 3, contrary to expectations of an increase of 700,000 barrels.

Gasoline stocks in the US fell by 1.1 million barrels, while distillate stocks rose by 100,000 barrels.

US exports of oil recorded a decline of 2.267 million barrels to reach 3.362 million barrels per day, after reaching a record high level in the previous week.