Oil Stops Rising Due to Signs of Growing Supplies

Oil fell from its highest level in seven months Thursday, November 26, as signs of growing supplies helped halt a rise led by optimism that demand for fuel would recover thanks to coronavirus vaccines.

Brent crude futures rose to about $ 50 a barrel this week, after three major pharmaceutical companies announced progress in developing vaccines that could start distributing before the end of the year.

But Brent fell 75 cents to $ 47.86 a barrel by 09:18 GMT, after its price fell by a dollar earlier. Its contracts had risen about 1.6% in the previous session.

US West Texas Intermediate crude fell 72 cents to $ 44.99 a barrel, after gaining 1.8% on Wednesday.

According to data, US crude stocks fell by 754,000 barrels last week. Analysts in a Reuters poll had expected an increase of 127,000 barrels. Stocks at the delivery point for WTI in Cushing, Oklahoma, decreased 1.7 million barrels.

But demand for gasoline during the week fell 128,000 barrels per day to 8.13 million barrels per day, the lowest since June.

Investors are also awaiting the OPEC meeting next week, its results are likely to support the maintenance of the current balance, at least.