The US Energy Information Agency announced a surprise increase in gasoline inventories of 5.4 million barrels last week

Oil prices are going through a turbulent period, hitting their lowest level in five months, following reports of a significant increase in gasoline inventories in the United States. At 15:58 GMT, Brent Crude futures were down 2.53% at $75.27 per barrel, while WTI crude was down 3.03% at $70.14 per barrel.

The US Energy Information Agency announced a surprise increase in gasoline inventories, CNBC reports. 

Analysis shows that crude stocks fell by 4.6 million barrels, far exceeding analysts' estimates. Experts point out that this decline in prices reflects increased concern about demand rather than supply.

"There's a demand destruction phenomenon taking place coming from the fuel side. Right now, the market is focused more on demand than supply," explained Dennis Kissler, vice president at BOK Financial.

In an effort to stabilize the market, the Organization of the Petroleum Exporting Countries and its allies have agreed to a voluntary production cut of about 2.2 million barrels per day for the first quarter of 2024. However, there are discussions on the possibility of extending or expanding this cut beyond March 2024.

Factors such as concerns about the Chinese economy and the widening US trade deficit are adding pressure on oil prices. With the prospect of a fifth consecutive day of declines, the oil market remains marked by pessimism, according to analyst Craig Erlam at OANDA.