Oil Prices Drop on Rising U.S. Crude Inventories, Gold Futures Edge Higher

Oil Prices Slide Amid Rising U.S. Crude Inventories, OPEC+ Considers Production Increase

Oil prices fell in early European trade on Thursday, extending their losses after U.S. crude inventories unexpectedly rose, raising concerns over weaker demand. Both West Texas Intermediate (WTI) and Brent crude dropped 1.6%, with WTI trading at $60.59 per barrel and Brent at $63.89. This increase in inventories has sparked fears about the sustainability of demand, putting pressure on oil prices.

Despite this, OPEC+ members are reportedly discussing the possibility of another substantial production hike in July, in an effort to counteract market weakness. The alliance aims to balance output and price stability, although the global recovery from the pandemic remains uneven.

Meanwhile, gold futures saw a modest increase, rising by 0.5% to $3,330.10 per troy ounce, as investors turned to the precious metal amid the ongoing volatility in the oil market. Gold is typically viewed as a safe-haven asset during times of market uncertainty, driving its demand higher.