Oil retreats from multi-year highs after U.S. stock build | Reuters

Oil retreats from multi-year highs after U.S. stock build | Reuters

Oil prices dropped nearly 2% on Wednesday, pulling back from multi-year highs, as an unexpected rise in U.S. crude inventories prompted buyers to take a breather after recent torrid gains.

U.S. crude inventories rose by 2.3 million barrels last week, against expectations for a modest dip of 418,000 barrels, the U.S. Energy Department said. Gasoline inventories also rose, while distillate inventories were down only modestly.

Brent crude hit $83.47 a barrel, its highest since October 2018, but settled at $81.08, down $1.48 a barrel, or 1.8%. U.S. crude climbed to $79.78, highest since November 2014, before retreating to $77.43 for a daily decline of $1.50 or 1.9%.

"We saw some profit taking as oil had run up significantly," said Gary Cunningham, director at Tradition Energy in Stamford, Conn.