Oil Retreats on The Decline of US Inventories

Oil prices fell today, giving up some of yesterday’s big gains on the back of a larger-than-expected drop in US crude oil inventories.

Brent crude was down 12 cents, or 0.2 percent, at $75.34 a barrel, after rising 2.5 percent in the previous session.

West Texas Intermediate crude fell 14 cents, or 0.2 percent, to $ 72.47, after a 3.1 percent increase on Wednesday.

The US Energy Information Administration said on Wednesday that US crude and fuel stocks fell sharply in the past week, as refiners in the US Gulf region and offshore oil facilities are still recovering from the effects of Hurricane Ida.

Oil stocks fell 6.4 million barrels in the week ending September 10 to 417.4 million barrels, compared to expectations in a Reuters poll of a 3.5 million barrel decline.

The storm reduced global supplies for the first time in five months, but the market is about to start approaching balance in October as the Organization of the Petroleum Exporting Countries and its allies, including Russia, or the group known as OPEC+, continue their plans to increase supplies.