Petroleum futures fell broadly by midday Wednesday as a report of a possible output hike by OPEC and its allies more than offset U.S. data showing decent drawdowns of refined product stockpiles last week.

At noon ET, June NYMEX West Texas Intermediate crude futures were off by around $1.65 to $62.05/bbl, and July WTI dropped by $1.55 to $61.35/bbl.

London-based June ICE Brent was about $1.60 lower at $65.85/bbl, and July Brent declined by $1.65 to $64.85/bbl.

The most active June RBOB decreased by 2.6cts to $2.0645/gal and the front-month May RBOB slipped by 2.5cts to $2.0750/gal. June ULSD was down by 3.25cts to $2.071/gal and May ULSD was off by 3.2cts to $2.1165/gal.

Reuters, citing three unnamed sources familiar with the matter, on Wednesday reported that several OPEC+ members will suggest accelerating oil output increases in June for a second consecutive month.

The petroleum futures market erased early solid gains to trade lower following the release of the Reuters report.

Energy investors largely shrugged off the latest Energy Information Administration weekly data that showed a 4.5-million-bbl drawdown of U.S. gasoline stocks and 2.4-million-bbl decrease in distillate inventory for the week ended Friday.

In addition, the oil market was out of sync with Wall Street, which rallied for a second straight day after President Trump said his administration would consider slashing its steep tariffs on China.

Trump also said he was not planning to replace Fed Chair Jerome Powell, which helped calm nerves among jittery traders.

In the spot market, San Francisco prompt CARBOB premiums strengthened by 5cts to a 50ct/gal premium to June NYMEX RBOB futures by midday trade. The product is by far the most expensive cash gasoline in the U.S.

--Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

(END) Dow Jones Newswires

April 23, 2025 12:36 ET (16:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.