Wednesday 6 October 2021

Oil drops after hitting multi-year high amid global energy crunch | Reuters

Oil drops after hitting multi-year high amid global energy crunch | Reuters

Oil dropped on Wednesday after hitting a multi-year high above $83 a barrel, pressured by an American Petroleum Institute (API) report showing rising crude inventories in the United States and technical indicators suggesting prices have rallied too fast.

The latest surge in the price of crude was underpinned by the refusal of the Organization of the Petroleum Exporting Countries and allies to boost output faster and comes against a backdrop of concern about tight energy supply globally.

On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the United States and other consumer nations have been urging. read more

Brent crude rose as high as $83.47, the highest since October 2018, and at 1335 GMT was down 98 cents, or 1.2%, at $81.58. U.S. crude climbed to $79.78, the highest since November 2014, before retreating to trade 71 cents lower at $78.22.

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