Crude Oil Prices Decline Amid Unexpected US Inventory Buildup

Contact Your Elected Officials

Concerns about the U.S. economy following Moody’s credit rating downgrade also put a downward pressure on prices.

An unexpected increase in U.S. crude oil stocks contributed to pushing down oil prices in early morning trade on Thursday.

For the week ending May 16, “U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.3 million barrels from the previous week,” said a May 21 report from the Energy Information Administration. “At 443.2 million barrels, U.S. crude oil inventories are about 6 percent below the five-year average for this time of year.”

The 1.3 million barrel jump in oil stocks came as markets expected a dip in inventories.

A buildup in inventory happens due to multiple factors, such as an increase in production or a decline in demand. Rising levels of inventory suggest market oversupply or that people are using less fuel than normal. This puts downward pressure on oil prices.

Brent crude oil futures were trading at $63.93 per barrel as of 6:15 a.m. EDT on Thursday, down 1.51 percent.

The national average price of regular gas was $3.19 per gallon on Thursday, down by more than 11 percent from the $3.61 a year back, according to data from the American Automobile Association (AAA).

Gas was expensive in California, Hawaii, and Washington, with prices exceeding $4 per gallon. The cheapest prices were recorded in Mississippi, Louisiana, and Alabama, with gas costing $2.75 per gallon or less.

Crude oil futures had fallen for the past two days, with Thursday’s decline being the third straight fall on a daily basis.

Recent declines follow Moody’s downgrading of the U.S. credit rating from AAA to AA1 on Friday.

Moody’s justified the downgrade, saying the fiscal health of the government was deteriorating, highlighting the debt burden facing the country.

A lower credit rating is typically seen as bad news as it suggests the nation could be facing financial trouble. Given that the United States is the largest consumer of oil in the world, concerns about its financial state contribute to lowering oil prices.

Treasury Secretary Scott Bessent dismissed the downgrade, arguing that achieving faster economic growth is more important than the growth in debt. Bessent said the Trump administration will boost government finances by reducing spending and deregulating the economy.

By Naveen Athrappully

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Blind Man’s Shutdown

Congress is playing the equivalent of Bind Man's Bluff. With the shout “tag your it” they seek to blame the other party for the government shutdown.

A Reluctant Acknowledgment: What Conservatives Can Admire in Everyday Progressives

Admirable ideological qualities seen in liberals and left-wing individuals are those of the everyday believer not their political leadership.

Ensuring Domestic Tranquility

The Supremacy Clause in Article VI of the U.S. Constitution establishes it as the highest law of the land, taking precedence over conflicting state laws.

Pam Bondi, Zohran Mamdani, and the ADL: Censorious Peas in a Pod

Typically, the only four circumstances under which the leadership...

Shut it Down – Shut it Down

Shut down and dismantle every federal agency not essential to citizens' life, health, or liberty — phase them out and end their power. permanently!

Trump Weighs on Cutting Agencies as Government Shutdown Enters Day 2

Trump to meet with OMB Dir. Vought to decide which agencies face cuts and whether reductions will be temporary or permanent.

Is There a 9/11 WTC and 9/10 Charlie Kirk Connection?

Strange parallels in online stories raise questions about whether Israelis and Mossad intelligence are our allies or adversaries.

Pam Bondi, Zohran Mamdani, and the ADL: Censorious Peas in a Pod

Typically, the only four circumstances under which the leadership...

Impact of Government Shutdown on Social Security: What to Know

SSA made it clear that retirement, survivor, and disability benefits are not subject to annual budget fights and will continue to be paid on time.

White House Withdraws EJ Antoni’s Nomination to Lead Bureau of Labor Statistics

The White House has withdrawn economist EJ Antoni’s nomination to lead the Bureau of Labor Statistics, the White House confirmed on Sept. 30.

US to Impose 100 Percent Tariffs on Foreign-Made Movies, Trump Says

President Donald Trump announced on Sept. 29 that he will impose a 100 percent tariff on all movies produced outside the United States.

Trump to Host Netanyahu at White House to Discuss Gaza Peace Plan

President Trump will host Israeli Prime Minister Netanyahu at the White House on Sept. 29 to discuss a ceasefire and broader peace plan for Gaza.

Trump Announces New Tariffs on Heavy Trucks, Drugs, Kitchen Cabinets, Other Products

President Trump will impose new tariffs next month on heavy trucks, branded drugs, kitchen cabinets, bathroom vanities, and related products.
spot_img

Related Articles

Popular Categories

MAGA Business Central