Oil declines in early Wednesday trade

Oil declined on Wednesday due to reports of a surge in crude stockpiles in the US, and indications that major producers will maintain their output policy at an upcoming technical meeting, as per a Reuters report.

Brent crude futures for May fell 0.9 per cent to $85.51 a barrel, while US West Texas Intermediate (WTI) crude futures for May delivery dropped 0.8 per cent to $80.98 a barrel.

This week’s retreat follows last week’s peak, remaining 3 per cent above early March prices. US crude inventories rose by 9.3 million barrels, according to the American Petroleum Institute.

Gasoline stocks fell by 4.4 million barrels, while distillate inventories increased by 531,000 barrels. OPEC+ is unlikely to alter its output policy until a ministerial gathering in June, with a meeting next week expected to confirm this stance. The group previously agreed to extend output cuts until the end of June.

Iraq and other members have announced production cuts to comply with quotas, raising doubts about OPEC’s ability to enforce its cuts.

Analysts suggest monitoring OPEC+ members for any indications of changes to production quotas.