Oil prices continued to lose ground on Thursday after data showed an unexpected increase in U.S. gasoline inventories, while indicators suggested that the United Arab Emirates may secure better terms regarding its reference production ceiling within the OPEC+ alliance. New York futures fell below $73 per barrel on Thursday, following a decline of 2.8% on Wednesday, marking the largest drop since mid-May.
U.S. gasoline and distillate inventories, which include diesel, both rose last week, offsetting the eighth consecutive draw in crude inventories, according to government data.
Delegates indicated that the UAE is nearing an agreement that could grant it a higher production cap for the next year, allowing OPEC+ to increase supplies in the coming months. However, discussions with Saudi Arabia are still ongoing.
Nonetheless, this settlement could open the door for other members to adjust their production levels, with one delegate noting that Iraq will continue with a higher baseline production.
**Prices:**
- West Texas Intermediate for August fell by 0.9% to $72.44 per barrel during trading on the New York Mercantile Exchange.
- September Brent crude lost 0.9% to $74.08 on the ICE Futures Europe exchange, after dropping 2.3% on Wednesday.
Data from the Energy Information Administration on Wednesday showed U.S. gasoline inventories rose by more than one million barrels last week, while a Bloomberg survey had forecast a draw of two million barrels. Distillate inventories jumped by about 3.7 million barrels, exceeding expectations, while crude supplies decreased by 7.9 million barrels.
