Oil price falls amid sharp growth in US gasoline reserves

Baku. 7 December. REPORT.AZ/ Gasoline reserves have increased sharply in the US during the period from November 25 to December 1.

Report informs, Energy Information Administration (EIA) of the US Department of Energy said in weekly report.

According to report, oil reserves in the United States during the reporting period totaled 5.6 mln barrels or decreased by 1.2% and amounted to 448.1 mln barrels.

Notably, analysts expect reserves to decrease by 3.4 million barrels.

In addition, there was a sharp increase in US gasoline reserves. Although analysts forecast growth in the reserves by 1.7 mln barrels, reserves increased by 6.8 mln barrels or 3.2% and reached 220.9 mln barrels.

Oil production in the US increased by 25,000 barrels or by 0.26% and amounted to 9.707 mln barrels/day which is the next record level.

Price of Brent crude oil has dropped to $ 61/barrel. The reason for the increase is shortage of news that OPEC+ countries will support prices in the oil market after the Vienna summit and also seasonal factors.

Analytical Group of Report News Agency informs, a sharp rise in petrol reserves in U.S. will lead to an increase in oil reserves in the coming weeks. Thus, oil refineries will slow down their activity and wait for the decline in petrol reserves.

Notably, due to the New Year holiday, demand for fuel is reduced by seasonal reasons. This, in turn, will lead to an increase in oil reserves and, possibly, a decline to $ 55/barrel.