Oil prices fell today, Thursday, amid concerns over supply abundance, following a nearly three percent increase during the previous session.
Brent crude futures dropped 24 cents to $76.72 per barrel. West Texas Intermediate (WTI) fell 21 cents to $72.62 per barrel.
Both benchmark crudes had risen about three percent on Wednesday, spurred by optimism regarding oil demand and negotiations over the debt ceiling in the United States.
Oil prices are being pressured by unexpected surges in U.S. oil inventories last week, attributed to a new withdrawal from the Strategic Petroleum Reserve. Inventories increased by five million barrels for the week ending May 12 to 467.6 million barrels, contrasting with expectations of a decline of 900,000 barrels in a Reuters survey.
Investors are also closely monitoring developments related to the debt ceiling negotiations in the United States.
Meanwhile, U.S. President Joe Biden and Republican House Speaker Kevin McCarthy reaffirmed on Wednesday their commitment to reach an agreement soon to raise the federal government's debt ceiling of $31.4 trillion, in order to avoid a default that could have catastrophic implications.
