Crude oil futures ended sharply lower on Wednesday on concerns about the market’s recovery after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, lowered their 2021 demand growth forecast. OPEC+ has lowered its oil demand growth forecast for this year by 300,000 barrels per day (bpd). The Organization of the Petroleum Exporting Countries and allies are set to meet on Thursday, to decide on output policy. Meanwhile, data released by Energy Information Administration (EIA) showed crude inventories dropped by 876,000 barrels last week versus expectations for a build of 107,000 barrels. The EIA said gasoline inventories also declined by 1.735 million barrels last week compared with expectations for a 730,000-barrel build. According to a report released by the American Petroleum Institute (API) on Tuesday, US crude stockpiles increased by 3.9 million barrels in the week ended March 26.
Crude oil futures for May fell $1.39 or 2.3 percent to settle at $59.16 barrel on the New York Mercantile Exchange. June Brent crude declined 53 cents or 0.83 percent to settle at $63.64 a barrel on London's Intercontinental Exchange.