An Unexpected Increase in US Inventories Puts Pressure on Oil Prices

Oil prices fell for the second session, under pressure from an unexpected increase in US crude inventories that raised concerns about demand after prices rose to their highest levels in many years.

US crude fell 0.67 percent, or 52 cents, to $76.91 a barrel before the opening of European markets, after the market rose on Wednesday to $79.78, its highest since November 2014.

Brent crude lost 0.1 percent, or eight cents, to $81 a barrel.

The US Energy Information Administration also said that crude stocks in the United States rose last week by 2.3 million barrels, compared to expectations for a modest decline of 418,000. Gasoline stocks also rose, while distillate stocks fell slightly.

This year, global oil prices have jumped more than 50 percent, adding to inflationary pressures that may slow the recovery from the Covid-19 pandemic and affect customer demand.

On Monday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) said they would stick to their agreement to gradually increase oil production, sending crude prices to their highest levels in years.