Oil prices remained in the red territory on Thursday as the commodity extended losses after the latest stockpiles report revealed a higher demand for gasoline but record high crude reserves. Analysts warn the session could be extremely volatile.
Prices for the North American West Texas Intermediate (WTI) crude traded 1.24% lower to $31.75 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude fell 1.19% lower to $34.00 a barrel on the London-based ICE Futures Europe exchange.
On Wednesday, a report released by the Energy Information Administration showed gasoline demand rose to a record high of 9.06 million barrels per day (bpd) on February 19, compared to the previous record of 8.6 million bpd.
The weekly report also showed that gasoline stockpiles declined by 2.24 million barrels in the last week, while distillate stockpiles also fell lower than expected.
Crude inventories in the US climbed by 3.5 million barrels over the last week, more than the 2.03 million barrels forecasted by analysts.