Wednesday, 27 October 2021

Oil drops more than 1% as U.S. stockpiles rise sharply | Reuters

Oil drops more than 1% as U.S. stockpiles rise sharply | Reuters

Oil prices fell on Wednesday after U.S. crude oil stockpiles rose more than expected, even as fuel inventories dropped and tanks at the nation's largest storage hub emptied further.

The bigger-than-expected rise in U.S. crude stocks gave some investors an impetus to unload long positions after strong gains in recent weeks brought both the Brent and U.S. crude benchmarks to multi-year highs.

Brent oil futures ended down $1.82, or 2.1%, to $84.58 a barrel, after closing at a seven-year high on Tuesday. U.S. West Texas Intermediate (WTI) crude settled down $1.99, or 2.4%, to $82.66 a barrel.

"We've had a reasonable pullback on profit-taking more than anything, but still $80 for (WTI) is a strong number," said Gary Cunningham, director of market research at Tradition Energy.

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