Following reports that US crude stocks rose by the most since November, oil prices fell for a second day, maintaining the fuel’s global and American benchmarks in the narrow range they have navigated this year.

After dropping 1.4% on Wednesday, Brent crude sank toward $81 per barrel while West Texas Intermediate neared $76. Last week, the US oil storage hub in Cushing, Oklahoma, saw an increase in holdings of 12 million barrels, which was more than anticipated. Nevertheless, despite refinery interruptions, gasoline and diesel inventories fell.

Standard Chartered Plc investment strategist Han Zhong Liang said, “Markets were shocked by the quantum of the increase, adding, “We expect the oil market to remain largely balanced in 2024,” with prices probably holding steady for now.

Between Middle East tensions and OPEC+’s attempts to reduce production on one side, and solid supply from drillers outside the cartel and worries that global demand growth would decelerate over 2024, crude has failed to break out of a $10 per barrel price range this year. Another obstacle has been the expectation that US interest rates may remain higher for an extended period of time as inflation continues.

Though they have somewhat declined, time-spreads for both main benchmarks are still in a bullish, backwardated pattern, suggesting that market measures are still indicating tightness in the market. Profits made by refiners from producing fuels like gasoline and diesel also continue to be high.

India is in talks to join the International Energy Agency, which will publish its monthly outlook later on Thursday. Global markets should stay “comfortable” this year as more supply enters the market and demand growth slows down, according to IEA head economist Fatih Birol’s comments earlier this week.