Oil prices plunge over 3% as US reserves rise by 3.6mln barrels

By Al Mayadeen English
Source: Agencies
5 Mar 2025 22:46

The latest US inventory report revised crude reserves upward by 3.6 million barrels, bringing total stockpiles to 433.8 million barrels.

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The Billings Refinery operated by Phillips 66 that processes crude oil from western Canada is seen along the Yellowstone River Wednesday, Feb. 26, 2026, in Billings, Mont, US. (AP)

Crude oil prices fell significantly on Wednesday, with Brent slipping below $69 per barrel for the first time since September 10, according to market data. The decline reflects concerns over rising crude inventories in the United States and expectations of increased production from OPEC+ nations.

By 15:51 GMT, May contracts for Brent crude had dropped 3.11% to $68.83 per barrel, marking a nearly six-month low. Meanwhile, April WTI futures saw a sharper decline of 3.72%, settling at $65.72 per barrel.

The latest US inventory report revised crude reserves upward by 3.6 million barrels, bringing total stockpiles to 433.8 million barrels. This unexpected increase has reinforced fears of an oversupplied market, pushing prices lower.

While US oil production recorded only a slight increase of 6,000 barrels per day, reaching 13.508 million barrels, the combination of rising stockpiles and steady output has added to concerns over excess supply.

Despite a decline in gasoline and distillate stockpiles—by 1.4 million barrels and 1.3 million barrels, respectively—these reductions were smaller than analysts had anticipated. The lower-than-expected drawdown has further dampened market sentiment, raising doubts about demand recovery.

Beyond US supply trends, broader market forces are shaping the downturn. OPEC+ is expected to increase production in April, a move that could add even more crude to an already saturated market.

Uncertainty surrounding global trade and economic slowdowns, particularly in major economies like China and the United States, is also weighing on demand expectations.