Oil Prices Fall As Industry Data Shows Large Rises In US Stocks

Oil prices fell on Wednesday after US crude inventories rose more-than-expected last week, even as gasoline inventories hit a four-year low in the world's largest consumer of oil.

 

Brent crude futures fell $ 2.41, or 2.8%, to $ 82.33 a barrel. US West Texas Intermediate (WTI) crude oil futures fell $ 2.74, or 3.3%, to $ 81.17 a barrel.

 

Crude oil inventories are up more than 3.3 million barrels in the last week, more than expected, but gasoline inventories have fallen to their lowest level since November 2017. US oil supply declined, and inventories in Cushing, Oklahoma, hit their lowest level in three years.

 

Traders also expect the US Federal Reserve to act to curb inflation, which could undermine some speculative purchases of risky assets, including oil.

 

“Markets are already under pressure,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “We fell due to profit taking from today's Fed meeting.”

 

President Joe Biden, speaking at the climate summit in Glasgow, blamed the rise in oil and gas prices on OPEC's refusal to pump more oil. The average retail price of a gallon of gasoline in the United States was $ 3.40 recently, according to AAA, about 20 cents more than a month ago.

 

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC +, meet on Thursday and are expected to reaffirm plans to keep monthly supply growth stable despite calls for an increase.

 

In a sign that high prices are encouraging increased supplies, BP said on Tuesday that it will increase investment in US onshore shale oil and gas to $ 1.5 billion in 2022 from $ 1 billion this year. Overall, production in the United States increased to 11.5 million barrels per day, which is the highest production in the United States this year.