Oil drops after U.S. gasoline stocks surge against expectations

Oil prices dropped on Thursday after official data showed a large build in U.S. gasoline stocks, raising worries about crude demand falling in the United States when global supply is rising. 

Brent crude fell 0.6%, or 36 cents, at $62.80 per barrel. U.S. oil dropped 0.6%, or 38 cents, at $59.39 per barrel. 

U.S. crude inventories fell deeper than expected, while gasoline stocks sharply rose, contrary to analysts’ forecasts.

Oil stockpile declined by 3.5 million barrels to almost 502 million barrels last week. Gasoline stocks rose by 4 million barrels to more than 230 million barrels against forecasts of a decline. 

At the same time, global production is rising with Russia’s supply climbing from average March levels. 

The IMF said that the massive stimulus released to combat the COVID-19 pandemic may raise global growth to 6% this year, a rate last achieved in the 1970s.