Oil falls 3% to close at lowest level since March, Brent below $88

Oil drilling rigs

Oil deepened its losses at close today, April 17, as markets absorbed developments in the Middle East and the US inventory data for the week ended April 12.

Brent crude futures for June delivery fell 3%, or $2.73, to close at $87.29 per barrel -- the lowest level since March-end ($87).

WTI crude for May delivery fell by 3.15%, or $2.67, to $82.69 per barrel. This marks the lowest contract settlement since March 27 ($81.35).

Data from the US Energy Information Administration (EIA) revealed that oil inventories rose by 2.7 million barrels last week, exceeding expectations for an increase of 1.6 million barrels, with crude inventories at the Cushing Delivery Center remaining unchanged at 33 million barrels.

The EIA said that US crude production was unchanged at 13.1 million barrels per day in the last week, but the report showed a decline in demand for oil -- measured by finished products supplied to the market -- by about 16,000 barrels per day during the week.