Oil declines as US crude inventories rise

Oil drilling rigs

Oil prices closed lower today, Feb. 28, as crude inventories in the United States rose higher than expected in the week ended Feb. 23.

Brent crude futures for May delivery fell 0.6%, or 51 cents, to close at $82.15 per barrel. WTI crude for April delivery declined 0.4%, or 33 cents, to $78.54 per barrel.

Data from the US Energy Information Administration showed that oil inventories rose by 4.2 million barrels last week, while expectations indicated an increase of 3.1 million barrels.

S&P Global expects OPEC+ to extend crude oil production cuts beyond April 1, noting that the extensions might be announced by early March.

However, concerns remain about the demand outlook following a downward revision in US GDP growth data during the fourth quarter of 2023, to 3.2% from 3.3% year-on-year.