Oil prices fell by about 2% on Wednesday to their lowest level in two weeks, leaving investors frustrated due to the ongoing rise in inflation rates in Europe and fluctuating economic data from China. Brent crude futures dropped by $1.65, or 2%, settling at $83.12 per barrel. West Texas Intermediate crude fell by $1.70, or 2.1%, ending the session at $79.16.
These are the lowest closing levels for both benchmarks since March 31, erasing most of the gains achieved since the sudden production cut announced by the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies within the OPEC+ group on April 2.
The U.S. Energy Information Administration noted that U.S. crude inventories declined by 4.6 million barrels last week, along with increased refinery consumption and exports, while gasoline inventories unexpectedly surged due to disappointing demand.
