“Downward pressures spread following the release of the US Energy Information Administration (EIA) weekly report for the week ending April 28. The report observed an increase in gasoline inventories of 1,742 million barrels (m bbl) and a contraction in implicit demand of 893,000 barrels per day,” said Gabriela Siller, director of economic analysis at Banco Base.
He added that this is due to caution among consumers due to the risk of recession. He also commented that it is feared that consumers will limit the purchase of energy travel in the summer, since the implicit demand for gasoline typically increases in this period, as the season of road trips begins.
Prices have plunged this week on worries about the US economy and signs of weak manufacturing growth in China, the world’s biggest oil importer, and fell further after the US Federal Reserve raised rates. of interest on Wednesday. This limited the prospects for economic growth in the short term.
However, the market was supported by the Fed’s signal that it may suspend rate hikes to give policymakers time to assess the consequences of the recent bank failures and to settle the dispute over the rate ceiling increase. debt in the United States.