Crude oil prices today: Brent, WTI futures decline on jump in US inventory stock

Crude oil prices declined in the early trading hours on Thursday, June 27, which is seen as a likely impact of the rise in the crude stockpile maintained by the United States.

Global crude benchmark Brent slid 19 cents or 0.22%, with its futures for August delivery trading at $84.28 per barrel at 0445 hours GMT.

The U.S. West Texas Intermediate (WTI) crude was down 21 cents or 0.26%, trading at $80.69 per barrel.

US crude stockpile jumps

The data released by the US Energy Information Administration (EIA) for the week ending June 21 shows the American crude stockpile rising by 3.6 million barrel to 460.7 million barrels.

This was contrary to expectations, as a Reuters poll of analysts had estimated a drawdown of 2.9 million-barrel per day.

The data also showed a strong buildup of crude stock as compared to the preceding week, as the stockpile had dropped by 2.5 million barrels to 457.1 million barrels in the week ended June 14.

Prices seen in $85-$100 range

According to S&P Global, Brent price is seen in the range of $85-$100 per barrel in the short term. The estimate was shared in the backdrop of crude rates rising by 10% in June.

One of the key factors behind the upward movement in crude prices is the improved outlook for the second half of 2024. The EIA, earlier this month, said it expects the average American oil output to rise to 310,000 bpd in 2024. The revised forecast is 40,000 bpd higher as compared to the expectation shared by the EIA in May.

“Our analysts project the (Brent crude) prices to move in the range of $85-$100 in the coming months," Business Standard quoted Joel Hanley, global director, crude & fuel oil markets, S&P Global Commodity Insight, as saying.