Inventories and demand concerns weigh on crude oil closed lower for the third consecutive day

News on March 17, investors are concerned about the progress of the Russian-Ukrainian war, while the domestic crude oil supply in the United States increased for the first time in three weeks and traders worried about high oil prices leading to demand concerns, crude oil futures closed down for three consecutive days, continuing to remain below
$100.

West Texas Intermediate crude for April delivery fell $1.
40, or nearly 1.
5 percent
, to $95.
04 a barrel on the New York Mercantile Exchange.
Dow Jones market data shows that this is the lowest settlement price
for the front-month contract since February 25.
Brent crude oil prices fell $1.
89, or 1.
9 percent, to $98.
02 a barrel on ICE Futures
Europe's global benchmark for May.

Gasoline prices fell nearly 0.
4 percent to $2.
988 a gallon in April, and heating oil prices rose 2.
3 percent to $
3.
10 a gallon in April.
Natural gas prices rose 3.
9% in April to close at $
4.
748 per million British heat.

Commerzbank commodities analyst Carsten Fritsch said in a note: "If the price of Brent crude oil soared to $140 a week ago was inflated, so is
its plunge now.
" After all, there is still a long way to go to a peaceful solution to the war in Ukraine, and the picture we see on the news every day should be very clear
.
And sanctions against Russia could also effectively affect the market for a long time after the war, preventing many consumers from buying Russian oil
.
”

The International Energy Agency said in a monthly report on Wednesday that the war in Eastern Europe and the resulting sanctions could lead to a supply shock that would weigh on the global economy and push the oil market into deficit unless major producers ramp up production
.
The IEA says 3 million barrels a day of Russian oil and products could be effectively cut off
from global markets starting next month.

Analysts note that some are optimistic
about the talks between Moscow and Kiev.
Ukrainian President Volodymyr Zelensky was quoted as saying that the negotiations had become "more realistic" and Russian Foreign Minister Sergei Lavrov said there was "hope for a compromise.
"

At the same time, the oil market appears to be "increasingly concerned about the sustainability of current demand trends, especially consumer expectations that prices at (gasoline) gas stations will reach their highest levels on record during a seasonal season when non-essential travel should increase
.
" Robbie Fraser, global research and analysis manager at Schneider Electric, said
in a note.

The U.
S.
Energy Information Administration reported on Wednesday that U.
S.
crude inventories rose by 4.
3 million barrels
in the week ended March 11.
This has been followed by two consecutive weeks of declines
.
According to analysts in the S&P Global Commodity Watch survey, on average, the EIA expects crude inventories to increase by 200,000 barrels
.
The American Petroleum Institute reported on Tuesday that oil production increased by 3.
75 million barrels
.

The EIA also reported that gasoline inventories fell by 3.
6 million barrels per week and distillate inventories increased slightly by 300,000 barrels
.
Analysts surveyed that weekly gasoline supplies are expected to fall by 2.
6 million barrels and distillate supplies by 3.
2 million barrels
.

Matt Smith, Kpler's chief U.
S.
oil analyst, said implied gasoline demand continues and there is no sign of demand being undermined
.
He added that gasoline inventories were at their lowest level
this year.
However, implied demand for distillates took a hit, resulting in a slight rise
in inventories.

EIA data shows crude oil inventories
in Cushing, Oklahoma.
Last week, crude oil production at the New York Mercantile Exchange delivery center edged up by 1.
8 million barrels
.
Meanwhile, U.
S.
Strategic Petroleum Reserve inventories fell 2 million barrels last week to 575.
5 million barrels
.