Concerns about demand caused a second straight session of falling Oil prices

After US government statistics revealed weak gasoline demand during the peak summer driving season, demand concerns overrode tight global supply on Thursday, and oil prices fell for a second straight day.

By 00:03 GMT, Brent crude futures were down 37 cents, or 0.3%, to $106.55 per barrel. The price of a barrel of WTI crude futures dropped by 33 cents, or 0.3%, to $99.55.

Since Russian barrels were lost as a result of the country’s invasion of Ukraine, oil prices have fluctuated as traders strive to balance a tighter global supply with concerns about a potential slowdown in energy consumption.

US gasoline stockpiles increased by 3.5 million barrels last week, according to government data released on Wednesday, considerably above analysts’ predictions in a Reuters poll for an increase of 71,000 barrels.

The gasoline product provided, which serves as a proxy for demand, was roughly 8.5 million barrels per day, or about 7.6% less than it was at the same point in the previous year, the statistics revealed.

“We expect Brent oil futures to fall to US$100/bbl by Q4 2022, implying a modest fall from current levels,” Commonwealth Bank commodities analyst Vivek Dhar said in a note.

After the force majeure on oil exports was lifted last week, Libya’s National Oil Corp said that crude production has resumed at a number of oilfields.

However, one of Canada’s main oil export routes, the Keystone pipeline, continued to run at lower rates on Wednesday as repairs were made to a South Dakota power plant owned by a third party, adding to supply concerns, according to a statement from operator TC Energy.