WASHINGTON (dpa-AFX) - Crude oil futures drifted down sharply on Thursday on worries about a possible drop in demand for crude due to slowing global economy.
After finishing at over 5-month high on Wednesday, oil futures struggled today after the International Energy Agency's monthly report cautioned that sluggishness in economic expansion could erode crude appetite.
West Texas Intermediate Crude oil futures for May ended down $1.03, or 1.6%, at $63.58 a barrel.
On Wednesday, crude oil futures for May settled at $64.61 a barrel, gaining $0.63, or 0.98%.
Data released by the Energy Information Administration on Wednesday showed crude supplies in the U.S. increased by 7 million barrels last week, significantly larger than the expected rise.
The report said U.S. crude stockpiles rose to their highest level since November 2017, amid rising imports.
In its monthly report released today, the International Energy Agency said, 'Although the main sources of growth are doing well, there are mixed signals from elsewhere.'
A day earlier, the OPEC released a report that said Venezuela's oil output dropped to a long term low of below 1 million barrels per day last month, a drop of almost 500,000 barrels per day, due largely to U.S. sanctions and power shortages.
OPEC, Russia and other non-member producers have committed to reduce output by 1.2 million barrels per day for six months, from the beginning of this year. The OPEC members are scheduled to meet in the last week of June to review the pact.
The lowering of global growth forecast for the year by the International Monetary Fund and the ECB's warning about a slowdown have already raised concerns about energy demand. The minutes of the Federal Reserve's March meeting too showed members were concerned about sluggish U.S. growth and a weaker global economy.
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