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Oil Futures Snap 3-day Winning Streak, Settle Sharply Lower

Crude oil prices drifted lower on Wednesday, snapping a three-day winning streak, with traders looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, known as OPEC+.

Oil prices fell despite data showing declines in crude oil inventories in the U.S.

West Texas Intermediate Crude oil futures for August ended lower by $1.98 or about 1.8% at $109.78 a barrel.

Crude oil futures were down $1.77 or 1.56% at $112.03 a barrel.

Data released by the Commerce Department that showed U.S. economic activity shrank by slightly more than previously estimated in the first quarter of 2022, weighed on oil prices.

The report showed the decrease in real gross domestic product in the first quarter was revised to 1.6% from the previously reported 1.5%. Economists had expected the drop in GDP to be unrevised.

OPEC and OPEC+, which includes allies such as Russia, begin a series of two-day meetings today to discuss supply. The group is expected to maintain current goals of hiking output by 648 thousand bpd in July and August.

Data released by the Energy Information Administration (EIA) showed crude oil inventories fell 2.8 million barrels for the week ending June 24th.

Inventories of gasoline and distillates both rose by 2.6 million barrels for the combined two-week period, the data from the EIA showed.

Meanwhile, data from the American Petroleum Institute showed gasoline and distillates stocks rose while crude inventories fell for the week ending June 24.

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