WTI crude oil prices dropped more than 3% to $79 per barrel on Wednesday (May 1), reaching the lowest level in seven weeks as U.S. crude inventories rose due to weak demand.

WTI has fallen 9% from its highest closing price this year of $86.91 per barrel, which was driven up by investor concerns over the conflict in the Middle East in April.

By the end of the trading session on May 1, WTI crude had declined by $2.93 (equivalent to 3.58%) to $79 per barrel. Brent crude fell by $2.89 (equivalent to 3.35%) to $83.44 per barrel.

According to the U.S. Energy Information Administration (EIA), commercial crude oil inventories in the U.S., excluding the Strategic Petroleum Reserve (SPR), surged by 7.3 million barrels to a total of 461 million barrels last week.

This is the highest inventory level since June 2023. The refinery utilization rate, which measures the processing of crude oil into gasoline and other products, fell to 87.5%, significantly lower than the 90.7% rate at the same time last year.

The reduced refinery utilization is due to gasoline demand remaining below 9 million barrels per day for the past four weeks. The average daily gasoline demand was 8.5 million barrels per day last week, 1.3% lower than the same period last year.

In the Middle East, the U.S. and its partners continue to push for a ceasefire in Gaza. An Israeli official told NBC News that an Israeli delegation is present in Cairo, where negotiations are taking place.

Source: Vietstock