Oil prices are falling today, erasing previous gains. This is due to a massive increase in fuel inventories in the United States, which is larger than expected. Brent North Sea crude was down 1.4 percent around 18:45 CET, falling below $77.20 a barrel. At the same time, US West Texas Intermediate (WTI) also depreciated by 1.4 percent to equal $71.70 per barrel. During the day, both Brent and WTI lost two percent, after both added about three percent on Wednesday.
U.S. gasoline inventories rose by 10.9 million barrels in the week to Dec. 29, the biggest increase since May 1993, to 237 million barrels, the U.S. government’s Energy Information Administration (EIA) said. Analysts polled by Reuters had expected a drop of 215,000 barrels. Inventories of petroleum distillates, which include diesel and heating oil, rose by 10.1 million to 125.9 million barrels, the most since January 2019 and also more than expected.
Oil inventories fell by 5.5 million barrels this week, according to EIA data. But it largely reflects disruptions to shipping in the Red Sea, Mizuho analyst Bob Yawger said.
“The situation in the Red Sea has forced many refiners and oil buyers to go to the United States rather than go by ship around the Horn of Africa,” Yawger said.
2024-01-04 19:05:28
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