Oil Prices Drop Sharply Despite OPEC+ Production Cuts as Demand Slumps and Inventories Build Up

Oil prices dropped sharply on Wednesday following a buildup in U.S. gasoline inventories and falling demand.

The price drop came just after OPEC+ agreed to maintain production cuts, which should have buoyed prices.

Prices attempted to recover on Thursday but the bullish sentiment from the past months seems to have faded.

OPEC+ is sticking with its supply cap policies for now, reviewing monthly whether cuts should be adjusted.

The shift in oil market sentiment appears more fundamental than just a reaction to one report.