Crude oil futures fell again on Thursday as a surge in U.S. crude inventories was offset by a surprise raise in gasoline and diesel stocks, heightening concerns about fuel demand as the summer driving season gets underway.

– reported the Energy Information Administration U.S. crude oil inventories fell by a more-than-expected 4.2 million barrels in the week ending May 24, while gasoline inventories increased by 2 million barrels and gasoline demand fell to 9.1 million barrels per day from 9.3 million barrels per day last week.

Capital’s John Kilduff again told Reuters he expects gasoline supply to decline ahead of the holiday weekend, “but when refineries release it, it’s too much to deplete product supplies,” adding that he expects gasoline demand to hit 9. 5 million barrels/day entering the holiday.

“Weakness in gasoline markets persists draw in the rest of the oil complex” – said StoneX analysts. “The summer demand outlook remains uncertain due to elevated interest rates and a potential economic slowdown.”

Nymex RBOB (XB1:COM) gasoline futures close in June -2.4% to a three-month low of $2.4046/gal, while ultra-low sulfur diesel futures hit a near-year low.

Nymex (CL1:COM) pre-month crude for July deliveries has ended -1.7% to USD 77.91/bbl. sixth loss in the last eight sessions, and July Brent (CO1:COM) closed -2.1% to USD 81.86/bbl.

ETFs: (NYSEARCA: USE), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (NYSEARCA: UGA)

Volatility may continue over the weekend as the market awaits Sunday’s OPEC+ meeting, at which the cartel will decide whether to extend production cuts beyond the second quarter.

OPEC+ is working on a intricate agreement is expected to be agreed at the meeting, allowing the group to extend some of its deep production cuts until 2025, Reuters reported on Thursday.

The group is currently cutting production by a total of 5.8 million barrels per day, including 3.66 million barrels per day by OPEC+ members effective until the end of this year and 2.2 million barrels per day as part of voluntary cuts by some members that expire at end of this year. end of June.

The novel agreement could include an extension of some or all of the 3.66 million barrels per day cuts into 2025 and some or all of the voluntary 2.2 million barrels per day cuts into the third or fourth quarter of 2024, according to report.