Oil prices fell on Thursday after a massive increase in US gasoline inventories signaled a shrinking demand in the world鈥檚 largest oil-consuming country.
International benchmark Brent crude was trading at $80.06 per barrel at 1223 GMT with a 0.92% fall after closing the previous session at $80.80 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $77.11 per barrel at the same time for a 0.95% loss after it ended the previous session at $77.85 a barrel.
The downward price movement of Brent came after the benchmark rose to $81.50 a barrel during the previous session after a surprise rise in US gasoline stocks.
US gasoline inventories increased by 10.1 million barrels during the week ending Dec. 31, posting the biggest one-week surge since April 2020.
Helping to cap further price declines, crude oil inventories fell by 2.1 million barrels to 417.9 million barrels, far below the market expectation of a 3.4 million-barrel drop.
The price slump on Thursday followed the decision made on Tuesday by the 23-members of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to extend the current plan to increase output by 400,000 barrels per day (bpd) through February.
In their Joint Technical Committee (JTC) meeting on Monday, OPEC+ countries issued positive projections over the course of the pandemic with expectations that its impact would be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges.
Tuesday鈥檚 decision cemented the positive outlook of the group in relieving concerns over the supply and demand balance in the market.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr