Oil prices fell in early Asian trade on Tuesday after the European Union (EU) pushed for a ban on Russian oil imports, boosting global supplies, with resistance from member Hungary.
Brent crude futures fell 35 cents, or 0.3 percent, to 4 113.89 a barrel at 0004 GMT, while US West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.5 percent, to 3 113.68 a barrel.
EU foreign ministers have failed in their bid to pressure Budapest to lift its proposed oil embargo on Russia following the country’s invasion of Ukraine on Monday. An embargo would require the approval of all EU countries.
In terms of demand, China’s data showed that the world’s second-largest economy processed 11 percent less crude oil in April than in the previous year.
As demand from China declines, producers in the United States are increasingly trying to recover lost inventories in the wake of Russia’s war against Ukraine – which Moscow calls a “special military operation” – and recover from a coronavirus epidemic.
The U.S. Energy Information Administration (EIA) said in its productivity that Permian oil production in Texas and New Mexico would increase to 88,000 barrels (bpd) a record 5.219 million bpd per day in June. Monday report.
Strategic petroleum reserve inventories fell to 538 million barrels, the lowest since 1987, U.S. Department of Energy data showed Monday.