Crude Oil Plunges On Report OPEC+ Considering Accelerating Output Increases

(RTTNews) - After seeing considerable strength in overnight trading, the price of crude oil moved sharply lower during Wednesday's session in the U.S.

Crude for June tumbled has plunged $1.52 or 2.4 percent to $62.15 a barrel, more than offsetting the $1.26 or 2.0 percent surge seen on Tuesday.

The sharp pullback by the price of crude oil came as a report from Reuters citing three sources familiar with OPEC+ talk said several members will suggest the group accelerates oil output hikes in June for a second consecutive month.

Following OPEC+'s decision to in April to increase output by 411,000 barrels per day of oil in May, the three sources told Reuters some members want to increase output by a similar volume to the May increase.

Eight members of OPEC+ are scheduled to meet on May 5 to decide the June output plan.

The decrease by the price of oil also came as the Energy Information Administration released a report unexpectedly showing an uptick by U.S. crude oil inventories in the week ended April 18th.

The report said crude oil inventories crept up by 0.2 million barrels last week after rising by 0.5 million barrels in the previous week. Economists had expected crude oil inventories to dip by 0.7 million barrels.

However, the EIA said also gasoline inventories tumbled by 4.5 million barrels last week and are about 3 percent below the five-year average for this time of year.

Distillate fuel inventories, which include heating oil and diesel, also decreased by 2.4 million barrels last week and are about 13 percent below the five-year average for this time of year, the report said.