Hopes of Fed rate cut decline, oil prices fall under pressure

Oil prices fell amid weak markets, declining hopes of a rate cut by the Federal Reserve and easing geopolitical tensions, King Ten reported. U.S. refinery margins have plummeted, and the country's gasoline demand is at its lowest level since 2020. The latest U.S. crude oil inventory data showed that U.S. crude oil inventories increased by 2.5 million barrels in the week ended May 17, surprising the market. Cautious comments from Federal Reserve officials also reduced hopes for a rate cut, raising concerns that higher rates for a longer period would weigh on demand.