Oil Prices Fall After US Crude Oil Stocks Rise

Oil prices fell on Thursday after a sudden increase in US crude inventories and amid growing Covid-19 infections that threaten demand. Still, prices maintained most of the previous session’s gains due to expectations of continued tight supplies until the end of the year.

At 06:44 GMT, Brent crude was down 11 cents, or 0.2%, to $ 72.12 a barrel, after rising 4.2% in the previous session. US West Texas Intermediate crude fell 6 cents, or 0.1%, to record $ 70.24 a barrel, after rising 4.6% on Wednesday.

“Energy volatility remains high as traders try to digest weak demand in the short term due to Delta strain concerns and expectations of continued tight crude into the end of the year,” said Edward Moya, chief analyst at OANDA.

“Oil will struggle to recoup its losses until the wave of new restrictions begins to recede across Southeast Asia, Australia, and Europe,” he added.

US Energy Information Administration data showed that crude inventories in the United States, the world’s largest oil consumer, rose 2.1 million barrels last week to 439.7 million barrels, an unexpected increase that was the first since May.