Crude oil prices fell by more than 1% in mid-US trading on Wednesday, May 7, reversing gains from the Asian session and early European session. This was due to a rebound in risk appetite and investors’ focus on the US-China trade talks. Market concerns over supply and rising production returned to dominate investor sentiment hours before the Federal Reserve meeting. Brent crude fell by about 1.05%, trading at $61.50 a barrel, while US crude (NYMEX) traded at $58.50 a barrel, down about 1.01%.
The US Energy Information Administration report, released just moments ago, showed a decline in inventories of 2 million barrels in the week ending May 2, compared to expectations for a 1.3 million barrel increase. In detail, gasoline inventories rose by about 200,000 barrels, while distillate inventories, which include heating oil and diesel, fell by about 1.1 million barrels.